Contract: SID EE 32 2015/2016
Scope of work
1. SCOPE OF WORK
1.1 Description of the goods
Tender to appoint service providers for the supply and delivery of heavy fuel oil as and when required over a period of three (3) years at Rooiwal power station.1.2 Procurement Strategy
1.2.1 Programme for delivery
The successful tenderer shall supply and deliver the heavy fuel oil as per official orders signed by the Chief Financial Officer: Finance Department, The relevant order number(s) must appear on all invoices and delivery notes.1.3 ABBREVIATIONS
ASTM - American Standard Test MethodCBD – Central Business District
SCM - Supply Chain Management
SLA – Service Level Agreement
km – Kilometre
MW – Mega Watts
°C - degree Celsius
cSt – centistokes
MJ/kg – Mega Joule per kilogram
1.4 TESTS AND INSPECTIONS
The City of Tshwane reserves the right to test oil delivered to prove compliance with the specification.1.5 EVALUATION CRITERIA
The bid will be evaluated in Three Phases as follows:a) Phase 1: Admin compliance
b) Phase 2: Technical compliance of the document,
c) Phase 3: 90/ 10 point system as prescribed in Preferential Procurement Policy Framework, Act of 2000
1. Phase 1
The tenderers must submit the required returnable documents as required by the City of Tshwane’s Supply Chain Management requirements.
2. Phase 2
The tenderer’s bids will be evaluated based on the compliance of the following:
(a) Certified copies of type test certificates from an accredited
testing facility.
(b) Completion of Schedule of tenderer’s experience” (Annexure A)
(c) Letters of previous appointment relating to the scope of work.
(d) Completion of Annexure B - Returnable document
(e) Product brochure/ Material safety data sheet.
3. Phase 3
The 90/10-point system as prescribed in Preferential Procurement Act is as follows:
(a) Price 90 points
(b) BBBEE 10 points
1.6 Delivery of goods and SERVICES instructions
1. Delivery is to be made to the Rooiwal Power Station, situated approximately 23km North of Church Square of Pretoria CBD, on the old Warmbaths road (R101 road) towards Hammanskraal.2. The briefing session is compulsory; and the venue for the session at Rooiwal Power Station (Board room 111). Contractors are reminded to bring their own safety boots, safety helmets and ear protection to the meeting.
3. All correspondence shall be in writing.
1.7 Applicable national and international standards
The latest revision of the following standards shall apply:1. Occupational health and Safety act, 1993 (Act No.85 Of 1993) and
applicable regulations.
2. ASTM D 189 - Standard Test Method for Conradson Carbon Residue of Petroleum Products
3. ASTM D 93 - Standard Test Methods for Flash Point by Pensky-Martens Closed Cup Tester
4. ASTM D 482 - Standard Test Method for Ash from Petroleum Products
5. ASTM D 95 - Standard Test Method for Water in Petroleum Products and Bituminous Materials by Distillation
6. ASTM D 2622 - Standard Test Method for Sulfur in Petroleum Products by Wavelength Dispersive X-ray Fluorescence Spectrometry
7. ASTM D 240 - Standard Test Method for Heat of Combustion of Liquid Hydrocarbon Fuels by Bomb Calorimeter)
8. ASTM D 1298 - Standard Test Method for Density, Relative Density, or API Gravity of Crude Petroleum and Liquid Petroleum Products by Hydrometer Method
9. ASTM D 445 - Standard Test Method for Kinematic Viscosity of Transparent and Opaque Liquids (and Calculation of Dynamic Viscosity)
10. And any standards or legislations that are related to the execution of the work as determined by relevant authorities
1.8 Particular / generic specifications
1. BACKGROUNDRooiwal Power Station is owned and operated by the City of Tshwane. Rooiwal Power Station is made up of five (5) turbo-generator units, each rated at 60 MW. A generating unit is made up of a pulverized fuel fired water tube boiler, turbine, generator, generator transformer and all related auxiliaries.
The heavy fuel oil is used for a boiler start up, coal flame sustainability and boiler shut down. The practice of appointing more than one supplier maintains cost competitiveness and also mitigates risk in the event of a particular company being unable to supply.
This practice has historically proven to be sound and should be formalized.
At the commencement of each month, the Municipality’s Procurement Division obtains prices from the appointed suppliers for the supply of oil for that particular month. An order is then issued to that supplier who awarded the highest number of preference points, unless exceptional circumstances dictate otherwise. Preference points at date of tender will be used.
2. SCOPE OF WORK
Tender provides for the appointment of service providers for the supply and delivery of heavy fuel oil as and when required over a period of three (3) years at Rooiwal power station.
Only deliveries by road tankers will be accepted, and delivery must be made within 24 hours.
2.1 APPLICATION
The oil is to be used in large pulverised coal fired boilers when lighting up and when required for flame stabilization. The oil burning equipment is designed to function using oil having a kinematic viscosity of 150 cSt at 50°C.
2.2. OIL CHARACTERISTICS
The pour point density of the oil shall be a maximum of 0,98 at 20°C. The water content shall not exceed 0,5% by mass. The ash content shall be below 0,1%. The sulphur content shall not exceed 3,3%. Oil should be passed through 60 mesh filter prior to delivery.
The Municipality may reject the delivery of heavy fuel oil not complying with this agreement in terms of the quantity and quality of the supply.
2.3 TECHNICAL DETAILS
ITEM NO / DESCRIPTION / APPLICABLE STANDARDS / SPECIFICATION
1 / Carbon residue percent by % mass(max) Conradson / ASTM D 189 / 18
2 / Flash point (minimum) oC / ASTM D 93 / 57
3 / Ash content % by mass / ASTM D 482 / 0.1
4 / Moisture % by mass (max) / ASTM D 95 / 0.75
5 / Sulphur content % by mass (max) / ASTM D 2622 / 3.3
6 / Gross Calorific Value MJ/Kg (min) / ASTM D 240 / 43.4
7 / Nett Calorific Value MJ/kg (min / ASTM D 240 / 40.7
8 / Density @ 15 oC kg/l / ASTM D 1298 / 0.991
9 / Density @ 20 oC kg/l / ASTM D 1298 / 0.98
10 / Kinematic viscosity in centistokes at 50 oC / ASTM D 445 / 90
11 / Temperature of oil for offloading (min) oc / 40
12 / Delivery time required / 24 hours
3. ESTIMATED QUANTITY REQUIREMENTS
The estimated annual and weekly requirement for Rooiwal Power Station is as follows:
Estimated weekly consumption (28 tons):
Estimated annual consumption (1444 tons):
The actual weekly requirement varies according to seasonal demand for the generation of electricity and is, in addition always dependent on the conditions applicable to the orders placed by the Municipality. The estimates, provided above are, therefore, to be considered as a guide only and do not form part of this contract.
4. ALTERNATE SUPPLIERS
Since an adequate, continuous and reliable supply of heavy fuel oil to the Rooiwal Power Station is vital for uninterrupted power generation, the tender includes, inter alia, the following condition: “The lowest or any tender will not necessarily be accepted and the
Municipality reserves the right to accept the whole or any portion.”
Contracts are issued to include each of the tenders, received at the closing date.
The practice of appointing more than one supplier maintains cost competitiveness and also mitigates risk in the event of a particular company being unable to supply.
This practice has historically proven to be sound and should be formalized. At the commencement of each month, the Municipality’s Procurement Division obtains prices from the appointed suppliers for the supply of oil for that particular month. An order is then issued to that supplier who awarded the highest number of preference points, unless exceptional circumstances dictate otherwise. Preference points at date of tender will be used.
All the tenders received will be evaluated on the technical specifications
5. RESERVATIONS REGARDING ACCEPTANCE
The service provider agrees that the Municipality reserves the right to accept any tender for the supply of heavy fuel oil from one or more of the suppliers.
The Municipality reserves the right to accept any tender in whole or part and, at its own discretion, to accept any tender together with any other tender or tenders.
The Municipality is not necessarily compelled to accept the lowest tender but may, at its own discretion accept what is in its opinion the most favourable tender or tenders.
The successful bidder will be expected to submit monthly bids to SCM
for monthly evaluation and awarding.
6. PRICES
The price per metric ton for delivery by road tanker shall be tendered by the tenderer in the price schedule. A price based on the weight of oil supplied is preferred.
7. DELIVERY
If the heavy fuel oil is delivered by road transport, the oil shall be delivered to the Rooiwal Power Station approximately 23 kilometres north of Church Square, Pretoria, on the Old Warmbaths Road. All deliveries shall comply with the Road Traffic Act.
This shall be enforced through the SLA which will be signed by the City Manager.
8. OFF-LOADING
Present off-loading facilities comprise of:
Loading arm
The loading arm is based on a fully cantilevered arrangement and is specifically designed for this particular application.
Drain sampling connection
The loading arm is fitted with a branch and valve positioned between the main valve and tanker connection to facilitate in clearing or sampling the product.
Vent Connection
The loading arm is fitted with a branch and valve positioned between the main valve and tanker connection to facilitate in clearing the product.
Suppliers must indicate their acceptance of the present facilities with their tender submission.
9. Service Level Agreement
It is expected that the successful bidder to enter in a service level agreement (SLA) with the City of Tshwane with regards to the deliverables and performance of this contract. The following paragraphs will form part of the SLA.
Paragraph Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7) and Eight (8) will be enforced through SLA. The City of Tshwane reserve the right to add more information to SLA that will assist performance and deliverables.
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