APPENDIX E - SLA - GTAC



APPENDIX ESERVICE LEVEL AGREEMENTGOVERNMENT TECHNICAL ADVISORY CENTREREQUEST FOR PROPOSAL (RFP) FOR THE PROVISION OF THE NATIONAL VEHICLE FLEET SERVICES TO BE PROCURED AS A PUBLIC PRIVATE PARTNERSHIPBID NUMBER GTAC030/2018Service Specification PPP CONTRACT GOVERNANCEPrivate Party ResponsibilityResponsibility of NDoT or NUD’sReports RequiredPenalties to Private Party for not meeting Service TargetComment/DefinitionsGovernance StructureThe Private Party will make available the following staff for the Project Term:A Lead Client Services Manager (LCSM) who will take accountability and responsibility for the contract management on behalf of the Private Party Customer Service Manager (CSM) per NUD who will be the contact person between the Private Party and the NUD.Ensure that a regional office is available with CSM and applicable operational staff to ensure that the Project is managed effectively.Any other resources as may be required.NDoT will nominate at least one representative from each NUD that will serve on the Steercom; and A regional official per NUD as a contact point in each region, to represent the NUD’s at the regional meetings on behalf of the said NUD.NDoT will co-ordinate meetings.The approval NDoT, not be unreasonably withheld, shall be required for the appointments and staff allocated by the Private Party in regard to the management of this ProjectA R5 000 Penalty per day will be payable by the Private Party in the event that the Governance Structure is not agreed and finalized with NDoT within 3 months from SignatureDate In order to facilitate the smooth and effective management of the relationship, the Parties will implement and adhere to the contract governance structures set out below.Steering CommitteeLead Client Service ManagerNDoT Contract Manager andSenior Departmental RepresentativesOperating CommitteeClient Service Managers (CSM’s)NDoT Contract ManagerDepartment Fleet ManagersTechnical Risk CommitteeNDoT OfficialsPrivate Party Technical staffsProvincial ForumProvincial NDoT OfficialsProvincial Private Party Staffs1.1Steering CommitteeThe Private Party will make available the following Parties to attend meetings:Chief Executive Officer (CEO)Chief Financial Manager (CFO)Lead Client Services Manager (LCSM)Customer Services Official (CSO)Operations ManagerCSMNDoT will co-ordinate meetingsNDoT will distribute Agenda at least 3 days before a meetingNDoT and NUDs to make available relevant resources for meetingsMinutes of Meetings and all business transacted at meetings of the Steering Committee shall be recorded by a CSM and signed the designated NDoT official on the Steering Committee, The minutes so kept shall be circulated to the members of the SteercomAll meeting must be minuted and signed or recordedA R10 000 Penalty per person, per meeting will be applicable in the event that the any of the aforementioned members fail to attend any meetings.The Steercom is critical to theProject and therefore it is imperative that members of the Private Party ensure attendance to all meetings.The duties of the Steercom include management of the Services and the relationship between the Parties and the NUDs and to provide strategic direction in regard to the direction.The Private Party will implement agreed upon principles and outcomes from the Steering Committees, within the agreed time frames.The NDoT will measure and manage the effectiveness of all tasks and outcomes done by the Private Party at least once yearly.Documented feedback and portfolio of evidence should be provided by the Private Party for each outcome achieved.The Steering Committee will be constituted as follows:The respective Lead Client Service Managers of the Parties, including the NUD’s Contract Manager.The chairperson of the Steering Committee shall be the NDoT Lead Fleet Manager or his designeeThe Steering Committee may from time to time co-opt additional persons to sit on or attend meetings of the Steering Committee.The Steering Committee will deal with strategic issues and decisions that may affect all participating NUDs as well as any issues referred to it by the Operations CommitteeThe Steering Committee shall for the first 6 months meet on at least a monthly basis and then meet quarterly thereafter for the remainder of the Project Term, or at such other intervals as the Steering Committee may agree. In addition, the Steering Committee shall meet the request notice of any Party, on reasonable, or to conduct other ad hoc function contemplated in this Agreement. The time and place for meetings shall be determined by the chairperson, with due consideration for the availability of the other members of the Steering Committee.1.2Operations CommitteeThe Private Party will make available all relevant resources to attend monthly meetings (or more frequently as decided by the NDoT) and resolve operational issues as these might arise.Lead Client Service Manager Head of OperationsRelevant Customer Services OfficialsThe NDoT and NUD’s are responsible for making available all relevant resources for meetings in order to address any issues that might arise.The Private Party will be responsible for ensuring that meeting minutes must be distributed within 7 (seven) days of each meeting occurring.The Private Party shall make a Minute book/file at available during Working Hours for inspection by the members of the Steering Committee or their duly authorized representatives who shall be entitled to take copies or to make extracts.A R2 000 Penalty per member per meeting instance of non-attendance of the Private Party within one Business Day.The Operations Committee will be constituted as follows:The respective Lead Client Service Manager of the Private Party;NDoT Contract ManagerParticipating departments fleet managersAll CSM’s of Private PartyThe chairperson of the Operating Committee shall be the NDoT Lead Fleet Manager or his designee.The Operating Committee may from time to time co-opt additional persons to sit on or attend meetings of the Committee.The Operating Committee will look into the day-to-day running of the Project, and implement decisions taken by the Steering Committee.1.3Technical Risk CommitteeThe Private Party will make available all relevant resources to attend meetings of the Technical Risk Committee and resolve issues as these might arise from these discussions. Such meetings are to be conducted once monthly to avoid a buildup of cases and unresolved claimsThe meeting will be comprised of representatives of the NDoT.The NDoT and NUD’s are responsible for making available all relevant resources (Transport Officers) for meetings and addressing issues as these might arise.Meeting Minutes within 7 Business Days of meeting been heldReports related to:FuelInsurance related mattersUtilisationVehicle AbuseReports must be presented by the Private Party in arrears (one month) be tabled and discussed. A R3000 Penalty per instance of non-attendance of the Private Party officials without prior notification of 8 hours.A R10?000 Penalty will be levied should the Private Party head representative fail to attend any such meeting.The Technical Risk Committee is an NDoT/NUD Committee that is constructed to deal with all the technical related matters of the Project and deal with mater referred to it by the Steercom. The Chairperson of this committee will be appointed from the NDoT/NUD’s.The Technical Risk Committee will discuss matters related but not limited to fuel, insurance and utilisation Risks. The main purpose is to ensure that all risk trends are been measured and mitigating actions are taken to prevent further risks.1.4 Provincial ForaThe Private Party will ensure that there are Provincial fora being conducted throughout the various regions on a quarterly basis, with the NUD’s of each region. This is an information sharing forum and therefore decisions will not be binding on the Parties. This fora is to discuss trends and contract performance and resolution based on the PPP Agreement.NUD’s will commit to ensuring that all provincial structures attend such fora.A quarterly consolidate report will be provided by the Private Party Regional office to the Contracts Manager and NDoT Office.Minutes of the meetings must be provided 5 Business Days after a meeting has been conducted.A Penalty of R20?000 will be levied should the Private Party fail to conduct such meetings.In the event that more than 2 meetings have not been conducted within any given year, a Penalty or R50?000 will be levied.The purpose of this meeting is to share information on the Project and deal with the Operational aspects that are affecting each region and the governance of the Project.1.5Governance FrameworkA Governance Framework will be made available to NDoT and NUD’s and any changes to such a framework MUST be communicated to and agreed with NDoT / NUD’s.A Governance Framework will be made available to the NDoT and NUD’s and any changes to such a framework will be discussed and agreed by the PartiesAll aspects of the framework to be agreed upon and reviewed or amended from time to timeA R2000 Penalty per day fee will be levied until such frameworks are agreed at which time the fee is payable, provided the delay in finalizing the frameworks was caused by the Private Party. If the delay was caused by the NDoT, no Penalty will be raised.The Governance Framework will define the roles and responsibilities of the Private Party; the applicable protocols will be defined in this document and provided to the NDoT for approval.An Events and Response Framework will be made available to NDoT and NUD’s and any changes to such a framework will be communicated to and agreed with NDoT / NUD’s.An Events and Response Framework will be agreed with the Private Party.By the Effective Date - 1% Penalty on total monthly invoice until such frameworks are agreed at which time the Penalty is payable, provided the delay in finalizing the frameworks was caused by the Private Party. If the delay was caused by the NDoT, no Penalty will be raised.The Private Party will in accordance with the agreed upon Events and Response Framework notify NDoT or NUD’s and take the required actions within agreed upon time frames of any Notifiable Events.NDoT may review and or amend the Events and Response Framework from time to time.Any required changes to such a framework will be agreed with the Private Party.A Penalty of R2000 should the relevant responses not be furnished within 3 Business DaysAll responses will be affected in writing within 3 days of been lodged.If NDoT issues a request / instruction in terms of the Events and Response Framework or Governance Framework, the Private Party shall duly respond within specified time frames.NDoT to follow Governance framework at all times.A Penalty of R2000 should the relevant responses not be furnished within the 3 Business DaysAll responses will be affected in writing within 3 days of been lodged.1.6General Business and Administrative RequirementsThe Private Party shall maintain full sets of records for the entire Project Term and for a further 5 years thereafter.NDoT may ask for any record kept for inspection and or for whatever reasons.The NDoT/NUD commits to ensure that all documentation is treated in confidentialityThe Private Party will be held liable to claim from the NDoT in regard to any proven financial losses and will be exempt from any further future participation of future business dealings with the NDoT or any government structures.The documentation and Intellectual Property will remain the property of the NDoT.The Project will be conducted in an “open disclosure” manner and therefore the Private Party will be required to share any workings, documents that may be requested by the NDoT or any NUD.The Private Party will ensure that detailed monthly reports are furnished to all NUDs. The expected reports are noted alongside.The Private Party will ensure that monthly summarized strategic reports are provided to the NDOT within 3 Business Days from the last calendar date of the month.The following reports will be made available to the NUDs and NDOT MonthlyFuel ReportAvailability ReportsService Due ReportShort Term Rental ReportMedium Term Rental ReportFraud ReportLease Fuel ReportMedium Tern and Short Term Fuel ReportCOF Report (HCV and Applicable)Call Center ReportsVehicle Availability Penalty ReportLeased Fleet ReportMonthly Financial Queries Logged ReportBreakdown and Road Side Assistance ReportAbuse ReportFines ReportVehicles Ordered ReportService Over Due ReportKilometer Utilisation ReportFuel Card ReportTracking ReportVehicle License ReportPenalty Due Report(this list will be updated before signature)A R2000 Penalty per day per report per NUD if late.A further R1000 Penalty per report if inaccurate data and reporting.The purpose is to ensure that reports are correct as such reports will be made to govern the operations of the Project and decisions within each NUD.The outlined reports form a basis of the expected reports needed to assist the NDOT and the NUDs with effective management of the Project. Additional reports could be requested during the Project TermService Specification PROJECT RESOURCESService LevelResponsibility of NDoT or NUD’sReports RequiredPenalties to Private Party for not meeting Service TargetComment/DefinitionsGeneral RequirementsThe Private Party will provide the NDoT with a Code of Conduct which will be agreed with NDoT All Private Party staff shall be able to converse fully (orally and in writing) in English and one other South African language (if deemed necessary by the NDoT)Staff appointment and allocation must be in accordance with the skills, knowledge and suitable educational standard of training to perform their duties in a professional and competent manner.NUD to advise Private Party Staff on a regular (6 monthly) basis about any changes to project resources or executive structures of the Private PartyA code of Conduct will be provided by the Private Party and agreed to by the Steering Committee.A Penalty of R50?000 will be levied if the code of conduct is not provided at the effective date of the contract.Private Party will provide NUD with a full set of credentials and documentation of all staffs. These documents must be kept as a portfolio of evidence by the Private Party.The NDoT Reserves the right to remove any Private Party Official from participation on this contract, at its own discretion.Private Party Staff shall conduct their affairs in a courteous and professional manner, and present a professional image in line with Good Industry Best Practice at all times.The NDoT reserves the right to request redress of any official employed by the Private PartyThe NDoT reserves the right to remove any Private Party official from participation on the Project contract, at its sole discretion.Service Specification MANAGEMENT INFORMATION SYSTEMS (MIS)Service LevelResponsibility of NDoT or NUD’sReports RequiredPenalties to Private Party for not meeting Service TargetComment/DefinitionsGeneral MIS RequirementsPrivate Party shall provide accurate and relevant information to the NDoT and the NUD’s in order to enable them to manage their fleet requirements. NUD’s must approve and agree to all reports before the contract effective date.A R2 000 Penalty per report, will be deemed for every inaccurate report issued any NUD’s at any given timeAdditionally, all standard MIS Reports not issued within a 24 hour period will be penalized at R500 per report, per NUD.The Private Party must ensure that the MIS System will be able to support the IT expectations of managing the fleet, providing reports. The system must also provide an audit function where necessary.The Private Party will be required to provide medium term and short term or other reports as and when required to the NUD’s within a 5 Business Days.As and when requestedFailure to supply such on time will warrant a R2 000 Penalty per reportAll other reports that are not agreed to at Signature Date shall be deemed as Medium Term and/or Short Term and shall make available within a 5 day Working Days of request.The Private Party is to ensure that the relevant MIS System has the capability to provide such ad hoc reports as and when required. Such reports are not envisaged to require any MIS System modifications that will result in an increase in costsThe Private Party shall ensure that all reports, MIS Information are provided in both hard copy and electronically.As noted aboveA R10 000 Penalty per month or part thereof is applicable until such reports are issued in both formatsThe Private Party is to ensure that the relevant MIS System has the capability to provide such ad hoc reports as and when required. Such reports are not envisaged to require any MIS System modifications that will result in an increase in costsManagement information (including but not limited to historic data and invoicing) shall be:Accessible electronically via a web-interface or similar mechanism to ensure ease of access,Provided on a continuous basis and shall reflect information which is current to within at least 24 (twenty four) hours.Uptime and available of MIS to NUD’s.User access reports.A R5000 Penalty per NUD who reported occurrence of down time to MIS systems where downtime exceeds 5% per month. All MIS systems have certain periods of downtime to perform backups and maintenance. There is a daily scheduled downtime between 24:00 and 03:00 to perform backups and this should not be regarded as downtime for purposes of this clause The MIS shall be scalable and flexible to accommodate the NDoT’s or User’s changing business requirements.Any system change request must be reasonable and be in accordance with the NDoT’s or User’s changing business requirements.A R10?000 Penalty shall be levied for every month where such systems are not provided or available.The fee is pro rata for every business day of the calendar month where such failures occurThe Private Party shall continuously seek to enhance its systems and shall evaluate any new technology designed to curb fraud and abuse.Management reports.The Private Party shall ensure that MIS systems are at all times materially free of:Computer VirusesTrojansWormsAny infection of Government owned IT equipment which can be traced back to the Private Party by either NDoT, NUD’s or professionals appointed by them for purposes of conducting an investigation will lead to claims for loss or damage.The full loss incurred by the NUDs as a result of failure by the Private Party.3.2Ownership of DataOwnership of all Fleet Data shall vest in the NDoT. In the event that the PPP Agreement is terminated, complete data sets shall be provided electronically to the NDoT as stipulated din the PPP Agreement.Monthly security status reports.A Penalty of 5% of any outstanding fees still to be invoiced retained until such time as complete data base is returned.3.3Access ControlThe Private Party shall prevent any unauthorised access, or loss of fleet data by any Private Party employee/representatives.NDoT or Users shall at all times use reasonable endeavours to prevent unauthorised use or abuse of the MIS facilities provided.Access reports will be made available in soft and hard copy on requestA Penalty of up to R1m (to be determined by NDoT).3.4Business ContinuityThe Private Party is responsible for business continuity / back-up as may be required to ensure system and data availability at all timesAll MIS systems have certain periods of downtime to perform backups and maintenance. There is a daily scheduled downtime between 24:00 and 03:00 to perform backups and this should not be regarded as downtime for purposes of this clause A R5000 Penalty per NUD per day that reported occurrence of down time to MIS systems where downtime exceeds 5% per month. All MIS systems have certain periods of downtime to perform backups and maintenance. There is a daily scheduled downtime between 24:00 and 03:00 to perform backups and this should not be regarded as downtime for purposes of this clause Service Specification FLEET MANAGEMENT SERVICESService LevelResponsibility of NDoT or NUD’sReports RequiredPenalties to Private Party for not meeting Service TargetComment/Definitions4. GENERAL PRINCIPLEThe Private Party is to ensure that fleet management principles are applied throughout the Project Term, the Private Party will provide sound fleet management Principles and associated services that will ensure efficiencies and service delivery within the NUD’s 4.1Vehicle Availability The Private Party will ensure that all Vehicles will be provided to the NUD’s on a full time 100% basis; however it is expected that all Vehicles will be available for no less than 95% of the month. Where any downtime occurs or for whatever reason, the Private Party will ensure that the NUD’s have a Vehicle for the required 95% availability. Where such a Vehicle cannot be made available for the required time, the Private Party will ensure that a similar replacement Vehicle is provided.The NDoT and the NUD’s are responsible to ensure that where any Vehicle is not provided for the required period of time, the relevant Penalties are applied.Such Penalties will be levied every month.The Private Party shall provide a monthly consolidated availability report to the NDoT in regard to the entire contractThe Private Party shall provide a monthly report to the NUDs and NDoT, listing all Leased Vehicles, their respective specified TMVH, total non-available time (downtime) and an indication of whether or not the availability service level was achieved. A R50?000 Penalty will be applied by the NDoT where the total contractual availability has not been achieved.In the case of the NUD’s a Penalty of 2 times the rental cost of that unit will be applied per Vehicle, where such availability has not been met. All Vehicles will be operational 24 (twenty four) hours, 7 (seven) days a week.NDoT may perform inspections to determine and conclude on conformance by the Private Party with required Operating HoursReport indicating hours of operational availability.Availability Penalties will apply4.2 Ordering of Vehicles and Fleet MixThe Private Party shall ensure that all Vehicles are delivered within the prescribed periods from the effective date of the agreement.The Private Party will ensure that all Vehicles are ordered as follows:30 days for a standard Vehicle3 months for a specialized Vehicle The NUDs will ensure that the Private Party is furnished with signed a list of Vehicles requirements at inception of the contract.The Private Party will provide a detailed list to the Contracts Manager of all Vehicles required by all NUDs.A Penalty amount equivalent to the rental cost of each day x the number of delay days will be levied x 2 for each Vehicle not delivered on time.All vanilla Vehicles are considered as standard.All specialized Vehicles are Vehicles to which engineering has been performed. These would relate to Vehicles supplied for DAWF or Correctional Services; however other NUDs may have specialized needs.All Vehicles must be ordered and signed for by each NUD. The Private Party must provide a Vehicle ordering template as part of a rental agreement for any Vehicle ordered.A Vehicle Quotation Form must be provided within 5 Business Days detailing:Type of VehicleColourFinancial Costs as per the contractResidual ValueAccessories and associated costsAcceptance by the NUDDate of quotationDate of AcceptanceThe NUD’s will reconcile the quotation to ensure that all costing is as prescribed by the Tender Rate Card and where discrepancies occur, a Penalty must be levied as prescribed.A monthly report must be furnished to the Contracts Manager and NUD’s detailing the Vehicles quoted for, the date ordered and when the Vehicle is expected to be delivered.A R2000 Penalty for inaccurate quoting A Penalty of R2000 will be levied for failure to deliver the quotation within the prescribed period.If applicable, a further Penalty will be levied for late delivery as prescribed.The quotation received from the Private Party must be signed by the accounting officer, and once signed, will be binding on the private party.The Private Party shall provide a monthly report of all Vehicles delivered per NUD.The Signed Quotation form will constitute a contract between the NUDs and the Private Party.All Long Term Vehicles must be fitted with a Tracking device and a driver identification facility.A Penalty of R5000 will be levied for incorrect delivery of a Long Term Vehicle.The Private Party shall be responsible for all losses associated to Long Term Vehicles not fitted with Tracking devicesThe benefit shall be passed onto the rate of insurance. The NUDs shall be provided with a facility to track Vehicles at any given stage of the Project TermRequirements for servicing or installation of accessories:All services shall be carried out at authorized repair agents by technical personnel certified by the manufacturer,Only accessories approved by OEM’s shall be fitted to any Vehicles to ensure that warranties of the Vehicle and accessories will not be affected.Invoices in respect of services shall be retained and be produced on demand,On return the NUD shall inspect a Vehicle. If the Private Party is not advised within 4 Business Days of return of the Vehicle of any problem, the Vehicle is deemed to have been received in a satisfactory condition.Where such warranties are affected, the Private Party will be liable for all costs related to the cancellation of warranties and the re fitment of OEM authourised accessories.All accessories shall be agreed and singed off by the NUDs accountable persons at the time of a Vehicle been ordered.Accessories fitted after a Vehicle has been supplied must be agreed and signed off by the NUD and the Contracts Manager, with a calculation of all impacting costs before any accessories are fitted.The Private Party will address all poor quality repairs immediately and provide the NUDs with a similar replacement Vehicle, of which the costs will be borne by the Private PartyThe Private Party shall ensure the quality of workmanship of all services and maintenance carried out.4.3Fleet Reduction & Advisory ServicesThe Private Party shall pro-actively advise NUD’s on the following:Ensuring that Vehicles are fit for purpose to reduce downtime;Ensuring interchangeability of Vehicles and Vehicles where this is applicable;Optimizing the mix between long-term, medium and short term requirements after having assessed the usage pattern of specialized Vehicles over a 3 month periods;Achieving availability up time on the fleet through provision of replacement Vehicles;Minimizing downtime on maintenance and accident repairs;Completing regular needs analysis to identify the “nice-to-have versus need-to-have”Transferring Vehicles between Departments with the consent of the NUD’s.Advise the NUD’s of best practice regarding balancing the fleet and over/under utilization.NUD’s will provide or participate in:Needs assessmentUser satisfaction surveysThe Private Party will provide each NUD with a monthly Utilisation Report which would indicate the kilometers travelled, outlining the over/under utilization and remedial solutions to ensure that compliance of the Vehicles.A Utilisation Projection report must be provided at the middle of the month with recommendations of mixing the fleet to avoid excess Penalty costs.Where the Private Party fails to provide expert advice, and such advice has been determined by the Technical Committee, a Penalty of R10?000 per instance will be levied.It is expected that the Private Party provide sound fleet management principles and advice to the NUD’s and NDoT throughout the Project Term.The Technical Risk Committee will act as a watchdog on the Project. In the event that the Private Party fails to provide such fleet management advice, and the Technical Committee brings such to the notice of the NDoT and the Penalty will be applied.Where Vehicles travel less than the contracted distance over a period of 3 months, this will be brought to the attention of:NDoT Lead Fleet ManagerNUD Fleet manager In writing, clearly indicating any remedial action to resolve or address the discrepancy.NUDs to act on underutilizationUtilization reportsA Penalty of R10000 per NUD, will be levied for failure to provide fleet management advice to the NUD’S The Private Party will be expected to issue a reduced charge for any Vehicle that has underutilized. This charge shall be in line with the Penalties for over utilised Vehicles.Where the NUD’s no longer requires the usage of a Long Term Vehicle, a 2 month notice period in writing will apply.A de-fleeted Vehicle report must be provided within the standard reporting pack every month. This report will indicate the number of Vehicles per registration and the dates in which such Vehicles were returned.No penalties for early termination will apply where such notice has been given in writing to the Private Party.The Private Party will be liable for any costs after the 2 month notice period.The NUD/NDoT does not guarantee any numbers in relation to the size of the fleet per NUD.More so, it is incumbent on the Private Party to provide effective fleet management and utilisation of the Vehicles and reduce the numbers of units in each NUD fleet where such in line with utilisation.4.4Fleet ReplacementThe Private Party will ensure that all long term Vehicle supplied will be replaced at the following intervals:Light Vehicles – Max 150?000km or 5 years (whichever is reached first)Medium & heavy Vehicles – Max 240?000 km or 8 years (whichever is reached first)The Private Party is to ensure that notice is provided to every user at least 4 months before a Vehicle will be replaced, however a new quotation form and contract agreement must be completed.Users to place authourised orders with Private Party at least one month’s (in the case of standard Vehicles) and 3 months (in the case of specialised Vehicles) once notified by Private Party that Vehicle is due for replacementA monthly report on the status of the Vehicle fleet indicating:Period (time) remaining to end of contract per VehicleKm remaining to end of contract per VehicleNormal Vehicle ordering procedures Penalties (as prescribed above) will applyIn the event that reports are incorrect are provided the normal Penalties will apply and not submitted the relevant 4.5Scheduling & Administrative Functions???Private Party shall assist NUD’s with scheduling of fleet and Vehicles and related functions, both on ad hoc Basis and fixed time basis.NUD to inform Private Party on ongoing basis of transport and travel requirements. 4.6MaintenanceThe Private Party is solely responsible for ensuring that all Vehicles are fully maintained and that all Vehicles are in good working order and road worthy at all times.NUD’s shall immediately report any instances of Vehicles not being in good working order?A monthly service due report based on the manufacturer recommendations must be provided to each NUD to ensure compliance of Vehicles to be serviced.All Vehicles must conform to the regulatory standards as prescribed by the Road Traffic ActThe Private Party shall NOT levy costs for failure to service, however such Vehicles should be brought to the attention of the Contracts Manager who will further advise the relevant NUD of the impending service failure.Vehicles shall at all times be serviced and/or repaired: In compliance with Manufacturer’s specification,As required from time to time,?A Service Overdue report shall be reported to the Contracts Manager and NUD’s monthlyA R10 000 Penalty will applied where the Private Party fails to inform the relevant NUD and a one month calendar expires from the expected service due dateThe Private Party is solely responsible for informing Users regarding the services due on each Vehicle. The Private Party is to ensure that the users are informed30 days beforeA reminder 7 days before the service is dueThe private Party is to ensure that all necessary authorisation have been approved before the Vehicle is taken for service. The NUD’s will ensure compliance by each NUD.Maintenance scheduling reports shall be provided to the NUD’sA R10 000 Penalty will applied where the Private Party fails to inform the relevant NUD and a one month calendar expires from the expected service due date.Where such a report is supplied and the information on the report is incorrect, a Penalty of R2000 per report will be applied.The Private Party is solely responsible for the costs of any services or maintenance in the case that no Abuse is proven or admitted.The NUD’s shall not be liable for any costs related to the maintenance off the Vehicles.Any Vehicle accessories or parts damaged or lost during service shall be replaced at cost of the Private Party.The Private Party will inform the Contracts Manager and the Technical Risk Committee of any such discrepancies and where claims arise from the above, such costs must first be approved by the Technical Risk CommitteeNUD’s shall report any instances where any accessory or parts have been removed or damaged by any service outlet.The NUD’s will not pay any related invoices or costs in relation to such damaged or lost accessoriesThe Private Party will ensure that Vehicles are inspected on a quarterly basis to ensure the Vehicles specifications remain as when they were supplied.4.7 Replacement VehiclesIn the event that the time required to service a Vehicle exceeds the allocated non availability of 5%, the Private Party shall provide at his cost a replacement Vehicle of equivalent nature for until the original Vehicle is available.In the event that a replacement Vehicle is provided, such Vehicle will be deemed to be a continuation of the original Vehicle supplied and the availability will therefore continue.?The NUD’s shall levy Penalties where a replacement Vehicle has not been provided and the 95% availability is not achieved.?A monthly replacement Vehicle report will be provided which indicates the registration numbers of Vehicles, the start and end date of each replacement supplied.Where a replacement Vehicle is not supplied, a Penalty of 2 times the rental amount will be levied by the NUD.The onus is on the Private Party to provide the replacement unit.The Private Party shall provide a similar replacement Vehicle when a Vehicle is out of service.4.8Fuel and Related FacilitiesThe Private Party is fully responsible for: Providing a facility to procure fuel for both Leased and Medium Term and/or Shor Term Vehicles and that the NUD’s are able to fuel Vehicles throughout the RSA.A consolidated transaction report will be provided to the NDoT every month.A detailed transaction report will be provided to every NUD.A Penalty of R2?000 per incident where the Private Party has failed to provide a fuel facility, whether it be a fuelling point or where a fuel card has been rejected, and the NUD’s are unable to fuel any Vehicle.All procurement of fuel must be provided by the Private Party4.8.1Fuel The Private Party is fully responsible for:The accurate recording of kilometers, litres of fuel procured and details of other associated services procured such as oil.Ensuring that no unauthorized purchased of fuel take place (e.g. Filling of private Vehicles),Ensuring that the NUD is not invoiced for any mileage incurred for the time that the Private Party or any of its agents be using the Vehicle and at which time it is not exclusively available to the NUD NUD’s to report missing or stolen cards or tags to the Call Centre within stipulated time-frames.A monthly report must be furnished for all incidences related to fuel losses and theft. The report will include the Driver detailsType of Fuel procuredKm travelledFuel dispensedApplicable litresDate of TransactionTime of TransactionA R2000 Penalty for inaccurate fuel reportingA Penalty of R2000 will be levied for failure to provide the Fuel Usage Report.The risks associated to fuelling and the will be for the Private Party.The Call Center will generate a reference number for each incident logged by the NUD’s4.8.2 Fuel FraudThe Private Party will provide a facility to alleviate any fuel fraud on the Project.Any unauthorised fuel and related expenses for the account of the Private Party after the loss or theft of the card has been reported to the Call Centre.The NUD’s to ensure that all lost and stolen cards are reported to the Help Desk Call Center immediately.4.9Toll FeesThe Private Party is fully responsible for:Providing a facility to Pay for toll fees which is available to the authorized driver at all times,The accurate recording of transaction details,The Private Party shall be responsible to report unauthorised usage Ensuring that the NUD is not invoiced for any unauthorized expenses for the duration of the time that the Private Party or any of its agents might be using the Vehicle and at which time it is not exclusively available to the NUD.NUD’s to report missing or stolen cards or tags to the Call Centre within stipulated time-framesA toll usage report will be provided for each NUD every monthA R2000 Penalty for inaccurate reportingA Penalty of R2000 will be levied for failure to provide the Toll Usage ReportThe Private Party shall ensure that all Vehicles are registered for E-TOLLING where necessary and that there associated fitment costs are borne by the Private Party.No administration fees will be permissible and paid by the NDoT.The Private Party will provide a month E-Tolling report per NUD with associated costs detailing the:Registration NumberE-Tolling gate IdentificationA R10?000 Penalty per Vehicle where such applies.The Private Party will fund the E-Tolling Tags for each Vehicle supplied.4.10Private ExpensesThe Private Party is responsible for ensuring no private expenses whatsoever will be invoiced to the Department in question.All private expenses are to be recovered from users.NUD’s to provide assistance in recovering private expenses from the individuals in questionThe Private Party will raise an exception report on excessive usage Any expenses which cannot be traced to any specific NUD will be for the account of the Private Party.4.11Breakdown and Roadside AssistanceThe Private Party is responsible for providing roadside and breakdown assistance anywhere in the country where Vehicles are operated in line with the service requirements.The NUD’s commit to utilizing such facilities as and when needed.A R20?000 Penalty will be levied where such a service is not provided on any given day.This service shall be managed by the Call Center and be available 24/7/3654.11.1Response times – Break downsThe Private Party will ensure that Vehicle towing and recovery services are provided as a service offering. The Private Party will ensure that such services are delivered within the following parameters (from time call is logged to time that towing or response Vehicle arrives):In a major town or city – 2 hours Outside of a major town or city - 3 hours arrival time at the Vehicle is permitted.Drivers to contact Help Desk Call Centre as soon as a Vehicle has a breakdown or requires a towing facility.Reports containing:Time call loggedTime response Vehicle arrivedCalls not completed in accordance with SLAType of breakdownR1000 Penalty for every hour or part thereof after the permissible allocated time until a breakdown is attended to.It is the onus of the Private Party to ensure that there are adequate and competent service providers are available for use on this contract. The NDoT has a right to request removal of any service provider that is found ineffective or incompetent.4.11.2Response times – Accidents, hijackings or theftThe Private Party will provide a Collision Management Service. The CMS must provide Vehicle towing and recovery within the following parameters (from time call is logged to time that towing or response Vehicle arrives):In a major town or city – 2 hoursOutside of a major town or city – max 3 hoursThe Private Party is responsible for ensuring that:All accident or theft reports are promptly reported to SAPS and that case numbers are obtained within legal requirements,Ensuring that all accident details are reported to Insurance within required time-frames,Accident damaged or written off Vehicles are replaced within 1 dayThe Private Party will ensure that all major accidents and Vehicle thefts will be followed by a full investigation report/or accident reconstructionDrivers to contact Help Desk Call Centre immediately when a Vehicle has been involved in an accident.NUD’s to ensure that the Accident report, insurance claim form and copy of identity document of the driver are submitted to the Private Party.Reports containing:Time call loggedTime response Vehicle arrivedCalls not completed in accordance with SLAR1000 Penalty for every hour or part thereof after the permissible allocated time, should the Private Party fail to attend to the request.A Penalty of R5000 shall be levied where any accident report has not been supplied.It is the responsibility of the Private Party to ensure that where a Vehicle is in an accident, the NUD’s are assisted professionally in regard to managing the accident and the consequential events such as:Manage the towing of the Vehicles to a safe place.Arrange medical services if so needed.Ensure that the driver is safe.Manage the repair process.Advise the NUD of the repair timeframes.The NUD will not penalize the Private Party for failing to have a Vehicle 95% available if the Vehicle was involved in an accident and that the Vehicle was “undriveable”.4.12Driver verification?Private Party shall be responsible for ensuring that all persons wishing to drive a Leased or Medium Term and/or Short Term Vehicle are in possession of a valid, unendorsed drivers’ license and are not prohibited from driving any particular Vehicle. This will only take place at the time of delivery and Private Party will not be responsible for any other driver making use of the Vehicle whilst in the possession of the identified driver.In the event of Medium Term and/or Short Term Rentals, the Private Party will ensure that no Vehicle is supplied without verification of a valid license.Each NUD shall supply Private Party with a list of Authourised Drivers on a quarterly basis. Each driver to present a valid license for the code of Vehicle when collecting keys.No driver may allow another person to drive the Vehicle allocated to him or her for any reason other than personal injury.The Private Party shall be responsible to alert and report to the NDoT of any unauthorised driver who does not have a valid driver’s license.Any losses incurred due to failing to verify a driver’s license will be for the loss of the Private Party.4.13Ad-hoc Vehicle The Private Party will ensure that Medium Term and/or Short Term Vehicle are available as and when required by the NUD’s and it is the duty of the private party to ensure that such a service is available within the boundaries of South Africa.The NUD’s will ensure that that they commit to the process and procedures that govern the rentals of Medium Term and/or Short Term Vehicles.?A monthly report of all Medium Term and/or Short Term Vehicles hired by the NUD’s will be provided to the NUD with:Details of renterNUDStart date End date.Number of days rented forAn additional report will be provided to the NDoT where Vehicles have been rented for a period of more than 3 months.The applicable Penalties for failing and incorrect reporting will be levied in the case of such a failure. Any Ad-Hoc Vehicle bookings will be processed in a maximum of 12 hours for general Vehicles and 24 hours for specialised Vehicles during normal Business Days and 36 hours during holidays or weekends.The NUD will not bear any cost of any Adhoc Vehicle rented if the Private Party arrives more than 30 minutes later than the expected time of delivery.4.14Licensing and roadworthinessThe Private Party shall ensure that NO Vehicle is supplied to any NUD if the Vehicle is not licensed or does not comply with the Road Traffic ActNUD’s to inform Private Party of any potential issues regarding roadworthinessMonthly in advance:License renewal datesScheduled road worthiness testsCertificates of Roadworthiness receivedA R10?000 Penalty will be applied if any Vehicle is supplied that does not meet the Road Traffic Regulations.Any fines received from Traffic Authorities for licenses expired or late payment Penalties will be for the account of the Private Party, unless the fine was as a result of the driver/NUD failing to display the renewed license disc. The onus will be on the Private Party to prove that the licenses and discs were indeed received by the driver/NUD4.15Traffic fines and offencesThe Private Party is responsible for ensuring for all Vehicles at all times, that:All fines are recorded and paid within the due dates.The Private Party will ensure that all fines received be deferred to the actual offender.The Private Party shall ensure that NO fines are paid for by the NUD’s at all times.The Private Party will compile a database of each driver issued with a Long Term VehiclesThe relevant traffic authorities are informed of the identity of the actual offender as soon as possible.NUD’s to assist where possible to identify offenders and provide the Private Party with all the necessary data to ensure that the fine is transferred into the offender’s name.The NUDs will provide the details of the offender within a 15 day period from the time of been notified by the Private Party.The NUDs will obtain the license details and address of each driver supplied with a Long Term Vehicle and pass the said documentation over to the Private Party. This will be done before any Long Term Vehicle is issued to any official of the NUD.Monthly in arrears:Traffic fines receivedRepeat OffendersAny expenses incurred whilst an unauthorised driver or driver without a valid license is driving the Vehicle, or when a traffic offence is not reported to the NDoT within the required period will be for the account of the Private Party.The Private Party cannot hold the NUD liable and therefore will need to ensure that all fines are deferred to the actual offender. It is imperative that the NDoT assist the Private Party in obtaining such data.All fines will be administered in line with the expectations of AARTO. It is the Private Parties responsibility to ensure that the fines are administered as such.4.16 Insurance of VehiclesThe Private Party is responsible for ensuring all Vehicles are fully and comprehensively insured at all times.The Private Party is responsible for ensuring that Vehicles are equipped with efficient security equipment at all times.Any damages or costs incurred by Private Party or other third parties will be for the account of the Private Party in the event that:The Vehicle in question not being fully and comprehensively insured,Not equipped with functioning required security equipment,Or unless any negligence or unauthorised use can be proven by the Private Party.4.17Security EquipmentThe Private Party is furthermore responsible for ensuring that Vehicles are fitted with electronic security equipment such as the following to prevent and or deter theft, or assist in recovery of Vehicles:Tracking UnitsAll LTR Vehicles must be fitted with permanent Tracking devices. The Tracking devices must be able to be traced and tracked at all times, and only Vehicles that are regarded as high security risks will be exempt from been tracked. These Vehicles will be prescribed by the NDoT.Driver Identification must be available on each tracking unit. Driver Tags will be supplied by the Private Party.All Medium Term and/or Short Term rentals will be provided with the use of Mobile Tracking units.The NUDs must be able to track all Vehicles from the NUDs offices.The loss or damage of any Vehicle not fitted with suitable security equipment will be for the account of the Private Party.The Private Party will be liable for any losses related to defective tracking units in the event of theft.The Private Party will be responsible for the costs of rental and losses where the Medium Term and/or Short Term rental has been supplied without a mobile tracking unit.The tracking units will help with driver identification and can be utilised to determine the circumstances around theft of the Vehicle/ theft of fuel.The Private Party is to control the issuing of tags to each of the NUDs.The Private Party will not disclose the whereabouts of any mobile tracking unit to any NUD, for any Medium Term and/or Short Term supplied.4.18Car Wash ServicesThe Private Party is responsible to ensure that all Vehicles are neat and clean at all times.The Private Party will establish a Vehicle valet business as per Schedule 5 (BEE) which will allow for four car washes every month and one valet every quarter. The Private Party will assist an SMME to establish and build up this business as part of its contribution towards social responsibility.The Private Party will ensure that NO Vehicle is released from service without be cleaned and washed adequately.NUDs are responsible for keeping the inside of Vehicles tidy at all times.The NUDs will not be liable for any costs for washing the Vehicles ?In the event that the private Party fails to provide such a service a R50?000 Penalty will be levied.Additional BEE Penalties will be applied in terms of Schedule 5 (BEE)..4.19Courtesy ServicesThe Private Party is responsible for the following at own cost:Collecting stranded driver where the Vehicle was involved in an accident or where a technical problem has caused the Vehicle to break down.Delivering said driver to home, office or other convenient location.Making available overnight accommodation if more than 150 km from home and after 22:00 pmMaking available replacement VehicleA R5?000 Penalty where any NUD or official of the NUD’s has not been afforded the service after a motor Vehicle accident.4.20Abuse The Private Party is responsible for detecting any suspected cases of Abuse and report to the NUD and NDoT with 4 Business Days from time of occurrence becoming aware of the abuse.NUD to convene abuse investigation meeting within 48 hours from being informed by the Private PartyNUD’s to follow up with disciplinary action if requiredNUD’s to identify repeat offenders and prevent access to official fleet transport to such repeat offendersRegularly updated list of repeat offendersSuspected Abuse ReportsNature and extent of damageCost of damageA proper Abuse procedure will be drafted to regulate any suspected abuse.Any expenses or damages incurred:Whilst an unauthorised driver or driver without a valid license was driving the Vehicle, orExpenses / damages discovered and NOT reported after 4 Business Days limitation will be for the account of the Private Party.The Private Party will ensure that all presumed Abuse will be discussed and agreed to by the Technical Risk Committee.Principles of Abuse will be governed by the fair wear and tear policies of the fleet management industry.All cases of abuse must be proven and signed off by the Contracts ManagerService Specification INVOICINGService LevelResponsibility of NDoT or NUD’sReports RequiredPenalties to Private Party for not meeting Service TargetComment/DefinitionsGeneral PrinciplesThe Private Party will ensure that all services are invoiced in arrears, correctly and in line with the services provided. The NUD’s will be responsible to collect all invoices and ensure that are correctInvoicingThe Private Party is required to ensure all invoices shall be accuracy and completeness.NUD’s to reconcile invoices within 20 days from receipt and pay as per prescription of the PFMAReconciliations in an agreed-upon format to be submitted to the Private Party to process any adjustments against the immediately following month’s invoices.Invoice adjustment report indicating:Incorrect items for preceding monthThe Private will have 5 Business Days to resolve any queries lodged.Any queries not resolved in 7 days will be credited to the NUDs.The NUD shall not be liable to pay invoices not lodged within a 2 month period (operating period) . 5% Penalty of the total invoice total amount shall be levied for any failure to deliver accurate invoices to the NUD Any incorrect invoice shall be returned to the Private Party for correction.A Penalty shall of R10?000 be lodged by the NUD.The Private Party will ensure that all documentation provided is clearly understood and discussed with each NUD.Invoices shall be calculated in accordance with agreed invoicing principles at all times:A consolidated invoice shall be provided electronically and in hard-copy to the NUD within 5 Business Days from month-endThe invoice shall be calculated in arrears for the immediately preceding monthDetailed supporting schedules shall be made available electronically and in hard copy which tie up to the consolidated invoiceSeparate sub-invoices shall be provided in respect of Long Term, Medium Term and Short Term Vehicles, semi and Fuel charges.The NUDs shall ensure that all invoices are signed off and agreed in compliance with the PFMA.Separate invoice & supporting data for:Long Term VehiclesMedium Term VehiclesShort Term VehiclesFuelAbuse costs5% Penalty of the total invoice amount shall be levied for any failure to deliver the invoices to the NUDs on timeThe Private Party will ensure that all invoices are accurate and explained to each NUD when delivered.The Private Party shall ensure that training on the invoices and calculations are provided to each NUD.All invoices must be accompanied by supporting documents for audit purposesService Specification TRAINING AND SKILLS DEVELOPMENTService LevelResponsibility Of NDoTReports RequiredPenalties to Private Party for not meeting Service TargetComment/DefinitionsGeneral Principles1.1PPP Contract GovernanceThe Private Party shall ensure that the skills to manage the Project effectively are transferred to all NUD’s and appointed officials.NDoT to ensure that all NUD’s provide officials that will perform and manage the Project on behalf of the NUD’s6.2Training?Any training provided by the Private Party shall be:A combination of Vehicle Class type learner and experiential / practical learningAccompanied by professionally compiled learning materials of which the student may keep study material for reference purposes,Presented by a qualified training officer for that course / disciplineIdeally result in the issuing of an acknowledged certificate to successful students who have obtained the required level of skillAt least in South African English but preferably be presented in 1 more South African language.All training shall be at cost to the Private Party.Training shall be at venues convenient to both the Private Party and NUD’s.The report of all training must be compiled for compliance purposes. This will include the register of all attendees, and the content summary of the training.The report must be signed by the Contracts Manager.6.3Driver TrainingThe Private Party shall be responsible for driver training of identified individuals in NUD’s. Driver training may be in respect of licensed drivers (driver assessment or refresher course) or as yet unlicensed drivers (with the objective of getting a valid license for that category of Vehicle).Training in respect of unlicensed drivers will be limited to classroom based training.Departments shall be notified of no less than 4 training dates per annum for the Project Term, not less than 4 months before the training.NUD’s are responsible for identifying suitable candidates for training and informing the Private Party not less than 2 months in advance of a training date.NUD’s responsible for all reasonable costs in relation to overnight accommodation if required.Attendance registerProgress reports per individualA R5000 Penalty will be applied where:training is cancelled without 48 hour prior notice to NDoT and all participantsThe purpose of the proposed driver training is to reduce all risks and exposures on insurance and to ensure that the Vehicles are in prime condition and costs are not affected by the poor driving of the Vehicles.Only approved driving schools will be utilised.Certificates will be issued for each scheduled training.6.4Fleet Officer Training?The Private Party shall be responsible for fleet management training of identified individuals in NUD’s.Such training shall be presented in compliance with the best Industry standards and NUD needsNUDs shall be notified of no less than 4 training dates per annum for the Project Term, not less than 2 months before the training.NUD’s are responsible for identifying suitable candidates for training and informing the Private Party not less than 2 months in advance of a training dateProgress reportsA R5000 Penalty will be applied where:training is cancelled without 48 hour prior notice to NDoT and all participantsIn the event that the training is not held within any given year a R20?000 Penalty per training session will be leviedThe Private Party is to ensure that all training is provided by approved fleet specialists only6.5Personal CareThe Private Party is responsible for:Enquiring whether or not Emergency medical services are required in case an accident is reported and requesting the dispatch of medical assistanceArranging counseling services on request for employees involved in hi-jacking’s if requiredA R20?000 Penalty per incident will be levied of the Private Party fails to ensure such services are been provided at the time of incident.6.6User Satisfaction SurveysThe Private Party will be responsible for the costs of a user satisfaction survey every 12 months of the contract, the findings of which to be agreed and implemented within 30 days from date of agreement on such proposed changesNUD’s and NDoT to agree on changesNDoT to appoint a specialist advisor for purposes of conducting a user satisfaction surveyFindings of surveyProposed changesImplementation of recommendationsA R50?000 Penalty per year will be applied if a User Survey is not conducted within any yearService Specification PROJECT IMPLEMENTATION, PROGRAMME MANAGEMENT AND TERMINATIONService LevelResponsibility Of NDoTReports RequiredPenalties for not meeting Service TargetComment / Definitions7.1GENERAL PRINCIPLESIndustry Best Practice Project and Program management principles, such as PMBOK and PMI requirements, shall be in place at all times Signature Date and appointment of private partner to the project close-off at termination of contract. NDoT to provide any project management requirements at time of negotiations.Project management requirements to be agreed upon and reviewed or amended from time to time.Initial Program and Project Framework.Any subsequent changes7.2PROJECT PHASE OUTAt the end of the Project Term or in the event of termination, the Private Partner must make all necessary timeous arrangements for phase-out or hand-over.NDoT to ensure all requirements to terminate and end the agreement are in line with business practices. NDoT to agree Phase-out / hand-over procedures at inception of contract for both end-of life and early termination.Full program management planIn the event that the Private Party does not collect a Vehicle ear-marked for return on a specific date no fee shall accrue to the Private Party for the remainder of the use of the Vehicle unless it can prove that despite its best endeavours, the NUD failed to make the Vehicle available on stipulated date and time. Service Specification BBBEEService LevelResponsibility Of NDoTReports RequiredPenalties for not meeting Service TargetComment / Definitions8.1 General PrinciplesThe Private Party shall comply with the requirements as per Target Group Schedule.As per PPP Agreement and Target Group Schedule As per PPP Agreement and Target Group Schedule ................
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