South African Post Office

INVITATION TO SUBMIT INFORMATION

FOR THE SELECTION AND APPOINTMENT OF A

REPUTATION MANAGEMENT AGENCY

Tender Number 04/2010

CLOSING DATE 3 SEPTEMBER 2010 AT 10H00

The International Marketing Council of South Africa (hereinafter referred to as the IMC) has appointed Yardstick to assist with the selection of a Public Relations (PR) Agency as set forth in this tender document. Respondents are requested to treat all information, including thistender document, received from the IMC and/or Yardstick as confidential and must not discuss or divulge this information to any thirdparty without the IMC’s or Yardstick’s direct permission.

Responses to this tender will be in terms of this document. All information requested must be supplied and all annexures completed, whether such information or annexure refers to this stage or future stages of theTender. The information submitted during this stage of the Tender will also form part of future stages of the Tender and must therefore be complete, correct and true.

Stage 1 of the Tender – The Invitation to Submit Information - comprises of the following parts and shall be referred to as the Request for Information (RFI):

• Section 1Information on the Tender

• Section 2Tender Guidelines

–Annexure AEmpowerment Evaluation

(Must be completed by bidding agencies who do not have a valid BBBEE rating certificate)

–Annexure BShort-listing Questionnaire

(Must be completed by all bidding agencies)

SECTION 1: TENDER INFORMATION

1.BACKGROUND

The IMC is a public-entity which is tasked with the marketing of the Republic of South Africa in order to attract tourism, trade and investment, as well as foster national pride and patriotism. The IMC markets South Africa (SA) through Brand South Africa. The organisation operates out of its Head Office in Houghton. It also has country offices in the United States of America (USA) and the United Kingdom (UK).

In support of the above, the IMC hereby invites suitable communications agencies to Tender for the following portfolio:

Reputation ManagementAgency

1.1Thebidding agency will be responsible for the following services and should have strong credentials in this regard:

1.1.1Development of reputation management brand management strategies;

1.1.2Stakeholder relationship management (SA);

1.1.3Stakeholder relationship management (International);

1.1.4Message development;

1.1.5Thought leadership programmes;

1.1.6Facilitation of reputational research;

1.1.7Social and web-based Public Relations programmes;

1.1.8Crisis and issues management;

1.1.9Media relations;

1.1.10Media monitoring (tracking), evaluation and analysis (SA and International);

1.1.11Development and production of Public Relations collateral.

1.2Annual Expenditure:

The expenditure for this portfolio is approximately R50-million over 2,5years (September 2010 – March 2013) and is based on the estimated budget for the period. The budget includes agency fees and third party costs. These figures should be used as an indication only and the IMC makes no guarantee of future spend and offers this information only to assist in preparation of a submission.

2.CONTRACT DURATION

The IMC intends to enter into a contractfor a period ofthirty (30) months during which time there will be a series of bi-annual agency performance reviews. An unsatisfactory performance review may result in the contract being terminated during the term.

3.TENDER PROCESS

The IMC’sTender process consists of the following stages:

3.1.Invitation tosubmit information

3.2.Clarification Briefing

3.3.Submission of RFI documents

3.4.Evaluation of RFI submissions

3.5.Selection of Short-Listed Agencies (a maximum of four (4) agencies)

3.6.Briefing ofShort-ListedAgencies and distribution of Brief Packs and Commercial Packs

3.7.Submission of Commercial Packs by Short-ListedAgencies

3.8.Pitch Presentations

3.9.Selection of Successful Agency by the IMC Board

4.PURPOSE

The purpose of this stage of the Tender process is to:

4.1 Allow interested agencies an opportunity to submit required information to the IMC;

4.2 Evaluate information submitted by bidding agencies and create a short-list of a maximum of four (4) agencies;

4.3 Invite Short-Listed Agencies to the next stageof the Tender process thatwill commence with a detailed briefing session.

5.IMPORTANT DATES

• 26 August 2010Clarification briefing
• 30 August 2010Deadline for questions relating to RFI
• 3 September 2010Deadline for submission of RFIdocuments (10h00)
• 10 September 2010IMC announces Short-ListedAgencies
• 15 September 2010Briefing of Short-ListedAgencies
• 20 September 2010Deadline for questions relating to the Brief andCommercial Packs
• 28 September 2010Deadline for submission of Commercial Packs
• 6 October 2010Pitch Presentations

6.RFISUBMISSION

6.1Response Format

Your RFI submission must consist of one original, one identical paper copy and one electronic copy. The paper copy must clearly be markedCOPY 1. The electronic copy must be clearly marked with the bidding agency’s name. In the event that there are discrepancies in information contained in the various documents and/or copies submitted by the bidding agency, the bidding agency’s submission will be disqualified without further notification.

6.2Lodging of RFI Submissionsand Closing Date

All RFI submissionsmust be delivered by hand in a sealed envelope. The following information must appear on the outside of the sealed envelope:

6.2.1The International Marketing Council, 103 Central Street, Houghton;

6.2.2Name of bidding agency;

6.2.3Reputation Management Agency(Description of proposal);

6.2.404/2010 (RFI number);

6.2.53 September 2010 at 10h00 (Closing date and time);

6.2.6Attention: Moeletsi Mabuku

The RFI submission must be lodged in the IMC’s Tender Box located in the main reception of the IMC offices at 103 Central Street, Houghton, Johannesburg, on or before 3 September 2010 at 10h00. Bidding agencies must ensure that their submissions are registered.

The tender box will be accessible from 09h00 – 16h00, Mondays - Fridays.

Please Note:

Incomplete RFI submissions will be rejected and the IMC will not accept late proposals. All RFI submissions delivered to the IMC will become the property of the IMC and will not be returned to the bidding agency.

7.SECURITY AND INTEGRITY CLEARANCE

All information documents, records and books provided by the IMC to any bidding agency, in connection with this Tender or otherwise, are confidential. These may not be disclosed by any bidding agency to any third party, except with the express consent of the IMC, which must be granted in writing prior to such disclosure. The IMC reserves the right to disclose any information provided by any bidding agency to any of its employees or Yardstick.

8.INFORMATION REQUIRED

The bidding agency’s RFI submission must include the following minimum information to be considered valid and acceptable to the IMC:

8.1Agency Declarations

A covering letter on the bidding agency's official letterhead, confirming the following:

8.1.1That no conflict of interest exists (see point 26.);

8.1.2That the bidding agency acceptsthe guidelines, terms and condition of this Tender;

8.1.3That the bidding agency validates that the RFI submission is correct.

8.2Short-listing Questionnaire

The questionnaire contained in Annexure B of this tender document must be completed by each bidding agency.

8.3RFI Documents

In addition to the above,bidding agencies must complete and submit the following:

8.3.1Annexure A: BBBEE Self Assessment Scorecard (must be completed by bidding agencies not in possession of a valid BBBEE certificate)

8.3.2Annexure B: Short-listing Questionnaire

8.3.3Valid tax clearance certificate (must be valid until at least 31 December 2010)

8.3.4Valid BBBEE rating certificate (must be valid until at least 31 December 2010)

8.3.5Two latest sets of annual financial statements (audited in the event of a company)

8.3.6Documents required for agency associations/JV’s (see point 12)

9.EVALUATION CRITERIA

The Tender comprises a 3-stage evaluation process:

Phase I: RFI Compliance

Phase II:Short-listing

Phase III:Pitch

Only bidding agencies that comply with Phase I (RFI Compliance) will be considered for Phase II (short-listing) and only the top four (4)bidding agencies in Phase II will be short-listed to progress to Phase III.

The following evaluation criteria will be applied in this Tender:

9.1Phase 1: RFI Compliance

The following documents must be submitted:

9.1.1Annexure A: BBBEE Self Assessment Scorecard (must be completed by bidding agencies not in possession of a valid BBBEE certificate)

9.1.2Annexure B: Short-listing Questionnaire

9.1.3Valid tax clearance certificate (must be valid until at least 31 December 2010)

9.1.4Valid BBBEE rating certificate (must be valid until at least 31 December 2010)

9.1.5Two latest sets of annual financial statements (audited in the event of a company)

9.1.6Documents required for agency associations/JV’s (see point 12)

9.1.7Declarations

• No conflict of interest
• Acceptance of guidelines, terms & conditions of tender
• Confirmation of accuracy of information submitted

1. Phase II: Short-listing Criteria

RFI submissions will be evaluated and ranked using a weighted scoring system. The assignment of points by the IMC is final and will under no circumstances be open to appeal or protest by the bidding agencies. It is the responsibility of each bidding agency to understand the scoring system and to factor that system into the organisation and content of its RFI submission.

The following criteria will be applied to evaluate RFI submissions and to select a maximum of four (4) Short-ListedAgencies. Only bidding agencies that comply with Phase 1 (Compliance Criteria) will be considered in Phase II. The following criteria will be applied to select the top-performing Short-ListedAgencies:

1. Agency Profile (20%)

The IMC wishes to partner with a medium-large agency. The bidding agency must be based in Johannesburg. The ability to provide services in Cape Town is an advantage. The bidding agency must be part of a global network and the network must be able to provide support to the IMC in a number of IMC identified geographies (*). The bidding agency must have capacity to service the IMC account. Agencies that have received awards & recognition for the effectiveness of Marketing & Communication campaigns will receive higher scores.

(*) (China, Brazil, India, Russia, SADC, DRC, Zimbabwe, Japan, South Korea, USA , UK, UAE

Germany, France, Argentina, Nigeria, Angola, Egypt)

1. Service Offering (20%)

The ideal agency will have the ability to support the IMC across multiple disciplines including:

• Development of reputation management & brand management strategies;
• Stakeholder relationship management (SA);
• Stakeholder relationship management (International);
• Message development;
• Thought leadership programmes;
• Facilitation of reputational research;
• Social and web-based Public Relations programmes;
• Crisis and issues management;
• Media relations;
• Media monitoring (tracking), evaluation and analysis (SA and international);
• Development and production of PR collateral.

1. Strategic Capability (20%)

A strong strategic capability is required and the successful agency will have demonstrated success in developing solutions for corporate brands and working with leading global marketers. The agency will have a tried and tested approach, employing proprietary processes and tools, for the development of strategies and the measurement of corporate reputation.

1. Client Profile (10%)

The IMC focuses on ‘delivery through others’. To this end,bidding agencies’ current client portfolios will be considered and agenciesthat service large, South African corporate accounts will receive higher scores.

1. Experience (20%)

The IMC will score higher those agencies with experience in building brands & brand reputation, experience in working on campaigns that promote investment and agencies that have an understanding of tourism and the public sector.

1. BBBEE (10%)

Whilst not a gatekeeper criteria, higher points will be assigned to agencies with good BBBEE scores (level 4 and better).

9.3Phase III: Pitch Criteria

Only Short-ListedAgencies (maximum of four (4)) will be invited to pitch for the account. The pitch scorecard and pitch criteria will be shared with Short-ListedAgencies during the Pitch Brief.

10.RFI TERMS AND CONDITIONS

This Tender is subject to the IMC’s Tender Guidelinesthat have been included as Section 2 of this document.

SECTION 2: TENDER GUIDELINES

11.CLARIFICATION REQUIRED BY THE IMC

The IMC may request additional information, clarifications and/or validation of information contained in the RFI submissions. The bidding agency should endeavor to respond to the clarification request within two (2) working days.

To assist in the evaluation and comparison of the RFI submissions, the IMC may also seek the attendance of the bidding agency at clarification meetings to be held at IMC’s offices. During the evaluation process, no change in the content of RFIsubmission shall be sought, offered or permitted.

Should there be a difference of interpretation between the bidding agency and the IMC, the IMC reserves the right to make a final ruling on such interpretation.

12.ASSOCIATION WITH OTHER AGENCIES

The IMC will not accept any proposals to form associations upon award of the Tender. The association/s must have been in place for at least one year (12 months)at the time of the RFI submission. The bidding agency must deliver proof of the fact that the relationship has been in place for this period of time by providing details of the clients serviced by the association/s during the 12 month period.

In the case where a number of bidding agencies form a consortium, a principle bidding agency must be appointed as the Tendering authority to interface directly with the IMC. The consortium may not make any further modifications to the consortium after the submission of the RFI.

Submissions should clearly outline the nature of the relationship, the % shareholding in the association, the reason for the association and the potential benefits to the IMC. Failure to comply with this requirement will result in a bidding agency’s disqualification from the Tender process.

The IMC reserves the right to verify members of the respective association and/or consortium.

13.MODIFICATION OR SUBSTITUTION OF TENDER INFORMATION

Once RFI submissions have been made by the agency, the IMC will not accept or allow any substitution and/or modification of the information contained in the RFI submission unless as agreed during negotiations.

14.NOTIFICATION

14.1 Short-Listed Agencies

The IMC shall inform, in writing, the agencies that have been short-listed. It is the intention of the IMC to keep the RFI submissions and any other further Tender submissions of these agencies open until such time as the IMC has executed an agreement for the required services with one or more of the Short-ListedAgencies.

14.2 Unsuccessful Agencies

Upon selection of the Short-ListedAgencies, the IMC will notify each of the other bidding agencies and inform them that they have not been short-listed.

Please Note: The IMC’s decision on the selection of Short-ListedAgencies is final and theIMC will not enter into any further correspondence and/or negotiations with any unsuccessful bidding agency.

15.QUERIES

All questions or queries on this RFI must be communicated by e-mail . All questions and queries received will be answered by email.

Please Note: The questions and responses will be sent to all bidding agencies. Please bear this in mind when asking questions. The name of the agency asking the question will not be mentioned. The deadline for questions relating to the RFI is30 August 2010.

16.COST OF TENDERING

The bidding agency shall bear all costs and expenses associated with the preparation and submission of the RFI submission and the IMC shall under no circumstances be responsible or liable for any such costs, regardless of, without limitation to the conduct or outcome of the Tendering, evaluation, and/ or selection process.

17.VALIDITY

The RFI submissions provided to the IMC in terms of this Tender must be valid for a period of 120 days from the date of submission with the exception of the Tax and BBBEE certificates which must be valid until 31 December 2010.

18.NEGOTIATIONS

The IMC may seek to enter into negotiations to agree remuneration, scope of work, scope of services and other salient commercial terms with the Short-ListedAgencies

19.COMPLETENESS OF THE SOLUTION

The bidding agency must complete all documents in full and submit these with the RFI submission. Failure to comply with these requirements will invalidate the bidding agencyand disqualify the RFI submission.

Notwithstanding any possible shortcomings and/or inconsistencies in the Tender documents, the bidding agency must ensure that the solution offered will form a complete, cost effective and functional proposal.

20.CONTRACTUAL IMPLICATIONS

After awarding the Tender, the RFI submission, together with an applicable contract to be compiled in line with this completed document, will constitute a binding contract agreement between the IMC and the successful Short-Listed Agency. The Short-Listed Agency will assume total responsibility, regardless of any third party or sub-contracting agreements it may enter into.

21.CONDITIONS OF PAYMENT

The IMC will approve all content, reviews and assessments set. No service will be provided to the IMC before an official order has been issued to the supplier and service delivery will be within the specified time scale after the receipt of the official order. Invoices will be payable (30) days after receipt.

An invoice will be submitted to the IMC for certification and must be supported by all relevant documentation and original invoices from additional suppliers.

22.QUALITY ASSURANCE

All deliverables produced by the Short-Listed Agency, its personnel, agents, or sub-contractors will be subject to ongoing evaluation to determine its effectiveness and will be so guaranteed for the full period of this Tender.

Any lack of, or incorrect delivery which is attributable to poor or negligent work, will be rectified by the Short-Listed Agency at own cost and time and all costs relating to the non-delivery will be expressly and separately noted on billing documentation.

23.CONTRACTUAL DETAILS

23.1AWARDING OF CONTRACT

Proven relevant experience and success, as well as the ability to deliver reliable and effective service will be important considerations.

By the deliveryof a RFI submission, each bidding agency warrants that he/she is highly skilled, professional, competent, and experienced in the area for which he/she has bid. Any work performed by a successful bidding agency will be evaluated against these criteria.

RFI submissions that are qualified by a bidding agency’s own conditions may be rejected as being invalid, and failure of the bidding agency to renounce such conditions when called upon to do so may invalidate the RFI submission.

The IMC may request clarification or additional information regarding any aspect of the RFI submission. The bidding agency must supply the requested information within forty eight (48) hours after the written request has been made, otherwise the bidding agency may be disqualified.