To:

ALL PROSPECTIVE SERVICE PROVIDERS

Project Name:

Feasibility and Packaging for Experiential Hub

Requestor:

SARAH BAARTMAN DISTRICT MUNICIPALITY

QUOTATION NO.

 07/2024

NOTICE NO.

15/2024

Closing Date:

 Before 12h00 30 September 2023

SPECIFICATION

INTRODUCTION

SBDM would like to appoint a Service Provider to explore the opportunities and concept for an Experiential Hub, to facilitate tourism, trade and export, investment promotion and facilitation, and to assist SBDM to package it into a costed business plan with feasibility consideration within two months.

Currently the Sarah Baartman District Municipality (SBDM) is situated at 32 Govan Mbeki Avenue, Central, Gqeberha. The decision has been made by council to relocate to Addo, Sundays River Valley Local Municipality. 

BACKGROUND

Sarah Baartman District Municipality (“SBDM”) intends to support local SMEs development by establishing an experiential hub facility with domestic and international partners to uplift the local business. The intention is to set up experiential facility to facilitate tourism, trade and export, investment promotion and facilitation.

1.      Scope of Works

The focus of this assignment is to test the feasibility and package a sound pilot project business plan to guide the pilot implementation, the initial investment requirement, and the sustainability of the pilot project over 5-year period.

The final deliverables shall be a comprehensive Business Plan with a clear recommendation and implementation plan by evaluating options with financial and feasibility assessments. The following pre-determined objectives shall be part of the study:

1.         Define the problem statement and identify associated opportunities with stakeholder mapping

2.         Identify and recommend high potential small businesses, products and services suitable for piloting within the District and Province and categorize identified products

3.         Market assessment: provide a market potential analysis that describes development prospects and market focus for the hub. Conduct an assessment of current market conditions and constraints for potential opportunities. Identify main target markets and provide short and long-term outlooks therefor. Provide detailed estimates of market size and potential. Describe trends affecting the market and how market needs will be served. Assess the marketing and promotion of the business opportunities.

4.         Identify new export and tourism trade development opportunities in China for products for which we have relative competitiveness.

5.         Assess development opportunities for community participation and investment attraction. Identify value add activities that will benefit the local community and SMEs.

6.         Assess and estimate the potential economic growth increase to be generated by the project.

7.         Evaluate and recommend the requirements and layout for the experiential hub facility both in China and South Africa to guide the implementation for a 5-year pilot phase.

8.         Explore potential suitable locations within the region and provide costed recommendations with costed options.

9.         Allocate roles and responsibilities for strategic and operational partners.

10.     Evaluate different business models and recommend the most suitable one, ensuring that the guidelines for municipal supply chain management procedures are followed during implementation.

11.     Define the management structure and required expertise with a cost assessment, whether in-house or outsourced.

12.     Propose appropriate structured fundraising plans to guide the pilot implementation with recommendations for potential sources of funding such as sector department, Government agency and local business participation etc.

13.     Conduct a high-level feasibility study to evaluate identified options with financial assessment and comparison conclusion, outline realistic timeline for the proposed set of activities. The feasibility study shall demonstrate the affordability of the project to the government, the impact of the project on local social economic development for communities fith value for money consideration.

14.     Identify the barriers and challenges, if any, that could affect the sustainability of the project, provide practical solutions and recommendations to guide the implementation and to mitigate identified risks to ensure sustainability of the project.

15.     Develop a financial model and plan with short, medium, long term (capital expenditure, operational expenditure, cash flow project, risk analysis, identify potential funders, revenue generation.).

16.     Package a comprehensive business plan with implementation plans and guidelines.

The potential activities may include but not be limited to the following:

Activity 1

Conducting a fact finding and planning session to define goals and objectives with potential partners and stakeholders both from public and private sectors. Recommend a practical stakeholder participation and consultation process through the subsequent phases.

Activity 2

Formulate concept with options

a)         Define the problem statement and identify opportunities

b)         Establish short, medium and long-term objectives

c)         Conduct market analysis to determine the market demands and growth potential, estimate the market size or potential, identify main customers or target market and provide short and long-term outlooks. Describe trends affecting the market and how market needs will be served.

d)         Identify potential small businesses, products and services

e)         Categorize products and services base, develop promotion and marketing strategy and methods.

f)          Explore store requirements and layouts

g)         Identify suitable outlet locations within Eastern Cape and China SBDM will assist to identify some options from strategic partners

h)         Define the pilot phase and estimate activity volumes

i)          Allocate roles and responsibilities for partners

j)          Evaluate business models and recommend the most suitable for the purpose, consider fee options for users, recommend user charges which determine the viability gap funding required to attract local municipalities and private sector investment to the project

k)         Sensitivity analysis to evaluate the resilience of the model to changes in assumption and risks over the pilot project term

l)          Assess the legal, institutional and regulatory adequacy for the project and if there are gaps, provide mitigation measures.

Develop a terms of reference framework to guide the implementation

Activity 3

Defining and packaging the opportunity

a)         Conduct economic and financial analysis, develop a detailed financial assessment

b)         Package the implementation plan

c)         Propose appropriate funding commitments from partners

d)         Economic and social impact evaluation, development of a Socio-economic model that outlines the socio-economic impact of the proposed project for SBDM and Eastern Cape, which may include benefits towards government strategic objectives.

e)         Risk management model that highlights the risks and mitigating strategies to address those risks

f)          Compile all findings, recommendations and action plans into a comprehensive Business plan

g)         Compile practical implementation plan to guide the pilot project

h)         Consolidate extra notes into a Consultation Notes for future reference.

The key deliverables shall include following:

1)          Feasible Business plan (consider funding requirement criteria from funders, such as Sector departments, government agencies, business chambers, local municipalities and local business etc. A structured fundraising plan shall be included to guide the implementation and 5-year pilot implementation)

2)         Implementation guideline (to guide the kick-start of the implementation with details)

The Consultant must provide the following:

·         Reference letters on the letterhead of the institution where relevant work was provided.

·         Experience of key personnel in  Economic Development and Trade and Investment Promotion, Sector Project Feasibility Studies and Projects Business Plan Packaging.

·         Curriculum Vitae (CV) with  certified copies of qualification certificates of key personnel

·         Completed Annexure

Evaluation criteria

The quotes will be evaluated on the 80/20 preferential point system and on Functionality.  

Service Providers that do not obtain a minimum score of 70% on functionality criteria will be excluded from further evaluation.

Functionality will be evaluated as follows:

Where: 1 = Poor; 2 = Acceptable; 3 = Good; 4 = Very Good; and 5 = Excellent

A)  Experience of Applicant in Economic Development and Trade and Investment Promotion, Sector Projects Feasibility Studies, and Project Business Plan Packaging. 

Experience of Applicant in Economic Development and Trade and Investment Promotion, Sector Projects Feasibility Studies, and Project Business Plan Packaging, proof of previous experience of Applicant in conducting similar and related works.

List and reference letters of projects Reference letters must be attached. CVs of the individuals with full details to be attached.

Only those qualifying Bids will be evaluated in terms of the 80/20 preference points systems, where the 80 will be used for price (VAT inclusive) and a maximum of 10 points allocated for locality and a maximum of 10 for points allocated for B-BBEE status level of contribution as follows:

NB: In order to claim for these points, Bidders are required to submit an original and valid B-BBEE Status Level Verification Certificates or certified copies or the Sworn Affidavits together with their Bids to substantiate their B-BBEE rating claims. 

Points allocated for Locality.

NB: To claim points for locality, prospective bidders are required to submit proof of address of office dealing with the project. A valid lease agreement/municipal account in the name of the bidder or a municipal billing clearance certificate must be submitted. Failure will result in preference points not being allocated.

Payment For Services

Payment will be issued after the service has been rendered.

All relevant information must accompany all quotations submitted. No late or incomplete quotation will be accepted for consideration.

The municipality reserves the right not to accept the lowest or any quotation and no reason for the acceptance or rejection of a quotation will be furnished.

The service providers must complete the attached pricing schedule and provide an hourly rate inclusive of the VAT if you are a VAT Vender 

General

• Prospective bidders to be registered on the central Supplier database (CSD) failure to comply will render the quotation non-responsive.

• It is compulsory that all suppliers to quote on all items.

• Quotations to be valid for 60 days from the closing date.
• The municipality reserves the right not to accept the lowest or any quotation and no reason for the acceptance or rejection of a quotation will be furnished.
• The municipality reserves the right to accept full or part of the quote.

Formal written price quotations should be submitted in a sealed envelope, clearly marked “Feasibility and Packaging for Experiential Hub ”, which must be placed in the quotation box, 4th Floor, Govan Mbeki Avenue, Gqeberha, 12h00 noon 30 September 2024. 

Quotes may also be submitted by means of an email: This email address is being protected from spambots. You need JavaScript enabled to view it. with subject “Feasibility and Packaging for Experiential Hub ” before 12h00 noon 30 September 2024

For further enquiries with regard to the Request for Quotation, please contact the Project Manager, Dr Albert Yu on (041) 508 7130, email:  This email address is being protected from spambots. You need JavaScript enabled to view it.

All suppliers are required to register on the Central Supplier Database (CSD), as well as submit a Declaration of Interest form (downloadable from the Sarah Baartman District Municipality’s website; www.sarahbaartman.co.za) on the date of submission of their Formal Quote. Information on the CSD is available on the CSD website: www.csd.gov.za.

Should you have any enquiries please contact the Supply Chain Management Unit;

·         Khanyisile Notshulwana at (041) 508 7007 or email This email address is being protected from spambots. You need JavaScript enabled to view it.