Attachment 3 to Instructions to Tenderer

Local Content Instructions to Tenderer

Contents
1.0 Introduction.....................................................................................................................................2
2.0 Tenderer’s Commitment to Local Content......................................................................................3
3.0 Information and Market Intelligence...............................................................................................3
4.0 Tenderer’s Current Capabilities.......................................................................................................3
5.0 New Capital Investment..................................................................................................................4
6.0 Resourcing and staff progression policy and plans relevant to executing the Contract..................5
7.0 Past Experience...............................................................................................................................6
8.0 Skills Development of Nationals......................................................................................................6
9.0 Local Sourcing................................................................................................................................76
10.0 Access to Sub – Contracting and Supplier Opportunities...............................................................7
11.0 Support to Domestic Suppliers in Contract Execution...................................................................8
12.0 Support to High Potential Domestic Suppliers to Grow their Business..........................................9
13.0 Demobilization and Retrenchment..............................................................................................10
14.0 Risk Management........................................................................................................................10
15.0 Local Content Estimation.............................................................................................................11
1.0 Introduction
To enable the Company to properly assess Tenderers local content commitments, it is in the
Tenderers interest to explain as fully as possible in quantitative terms all the resources that they will
establish in Ghana. For each commitment, it is important to include specific work plans, actions with
time frames and measurable objectives.

Company requires that, in responding to the questionnaire, full answers be given and that there be
no cross - referencing to other parts of tender package, despite repetition of information.

Total local content value expressed in spend/financial terms shall be provided as a local content
premium by filling Table 1

This is a priced summation of the local content responses provided in the questionnaire.
Table 1 Pricing/Monetary Value of Local Content Plan
Item Description Price in USD Pricing cross-referenced to Reference in Tender
($) other Exhibits e.g. Submission
Resourcing, HSSEQ,
Training
Y/N

1. Capital investments to support Table 3 Column A

contract execution (charged to the
project)

2. Training of Contractor’s direct Table 6 Column B + C

national staff
3. Support for domestic suppliers in Table 8 Column B
contract execution
4. Strengthening the Table 9 Column B
competitiveness of high potential
domestic suppliers
5. Additional Risk Management of Table 10 Column B
Planned Initiatives Local Content
Plans

Local Content Premium

2.0 Tenderer’s Commitment to Local Content

2.1 The commitments made by the successful Tenderer will form the basis of fundamental
terms to be incorporated into any contract awarded by Company. Such commitments will become
binding performance obligations and will be monitored and reported by both the Contractor and
Company during the term of the Contract.

2.2 Any such contract will also require such fundamental terms to be passed on to
subcontractors and suppliers engaged by Contractor in the performance of the contract.

3.0 Information and Market Intelligence

3.1 Provide information relevant to understanding the capabilities and capacity of domestic
suppliers (including community – based suppliers) to participate in the Scope of Services

3.2 Provide information on domestic (national) and international markets that could support the
sustainable growth of domestic suppliers.

4.0 Tenderer’s Current Capabilities

4.1 Tenderer shall describe what assets, infrastructure and staffing it currently has in – country
that will support execution of the Contract. The Tenderer shall describe the permanency of this
infrastructure, and its capabilities and ability to support execution of the Contract.

Table 2 Existing Infrastructure In-Country to Support Contract Execution

Offices (currently owned or Other Infrastructure or Facilities Location

under long-term lease by the (currently owned or under long-
TENDERER) term lease by the TENDERER).
E.g. warehousing facilities
A B
M2 M2 of infrastructure or facilities
(excluding office)
5.0 New Capital Investment

5.1 Tenderer shall describe what new capital investments it shall make in-country to strengthen
its own capability or capacity to perform the Contract, e.g. setting up new facilities owned or leased
by the Tenderer, investing in plant & equipment, establishing corporate, project or contract –
specific Joint Ventures or other strategic alliances with domestic companies, or participating in
operational infrastructure that has dual public use. Where relevant, include description of key
financial assumptions for these investments, e.g. commitments from investment partners and third-
party investors, expectations of future workflow or user demand.

Table 3 Capital Investments in Capability and Capacity

A B
Work Categories Capital investments in own Capital investments in own capability
capability charged to the not charged to the contract (US$
contract (US$ over the over the contract period)
contract period)

Total (all years)

6.0 Resourcing and staff progression policy and plans relevant to
executing the Contract

6.1 Tenderer shall describe the steps it shall take in:

1. Recruitment to maximize the direct hiring of Nationals on a permanent and agency basis
2. Career path for Nationals working on Project
3. Anticipated staff progress over the Contract period of such nationals (i) in general and (ii)
into senior management (including expat equivalent) and supervisory roles details of
performance review programs it will implement for such Nationals, and level in the
organization these programmes will apply.

A B C D E

Total direct Total direct Labour – Nationals – Senior Nationals – Nationals – Skilled and
Labour – Non - Nationals (non Management (national Supervisory Positions Unskilled Position
Nationals - national man hours man-hours in Senior (national man-hours (national man – hours
(national as % of total man- Management positions in Supervisory in skilled and unskilled
man hours as hours) as % of total Senior positions as % of total positions as % of total
% of total Management man- Supervisory man – skilled and unskilled
man-hours) hours) hours) manhours)
Man hours –
Total

% Nationals
in category
Table 4 Resourcing – Direct Labour (Average Per Year Over the Contract Period)
 A B
Total National sub-contracted Total Non - National sub-contracted
labour (National man-hours, as % labour (National man-hours, as % of
of total sub-contracted man total sub-contracted man hours)
hours)
Man hours – Total

% Nationals
Table 5 Resourcing – Sub – Contracted Labour (Average Per Year Over the Contract Period)

7.0 Experience
7.1 The Tenderer shall describe its experience and successes in developing the skills and
competencies of Nationals. In this regard, the Tenderer shall describe the past or current alliances
with National (public or private) education and training establishments, and the role of the
Tenderer’s own training establishments, as relevant.

8.0 Skills Development of Nationals

8.1 Tenderer shall describe what steps it shall take to develop the skills of its own National
employees and agency staff in support of contract execution, including any proposed alliances with
national education and training establishments and qualification systems that meet national
standards. Describe how these proposals for skills development will address gaps in the local labour
market for sufficient specialized labour to support contract execution commencing with availability
in Ghana.

A B C
Total training hours for National Sub – Total on-the-job training for Sub – Total class – room training
employees and agency staff involved National employees and agency staff for National employees and
in contract execution over the involved in contract execution over the agency staff involved in contract
Contract Period (hours) Contract Period (hours) execution over the Contract
Period (hours)

Table 6 Training of Nationals (Average Per Year Over the Contract Period)
9.0 Local Sourcing
In relation to contract execution, Tenderer shall provide evidence of identifying and verifying the
following:

1. Goods and services which domestic suppliers are already capable of providing
2. Goods and services which domestic suppliers may possibly be capable of providing if
supported in doing so by the Contractor or through a strategic partnership or consortium
that would not be inconsistent with competitive tendering
3. Goods and services which domestic suppliers are not capable of providing, with or without
support.
4. Categories of good and services that offer a particular opportunity (high potential) for
domestic suppliers to grow their businesses beyond the contract period, competitively
replace imports or access global supply chains
5. Provide evidence of consultation with organizations knowledgeable about the capabilities of
the domestic supplier’s market relevant to contract execution

10.0 Access to Sub – Contracting and Supplier Opportunities

10.1 Tenderer shall describe and where possible, quantify, what activities will be undertaken to
ensure domestic suppliers have access to sub – contracting and supplier opportunities in contract
execution, including

- Design specifications
- Approved supplier lists
- Outreach Communication
- Guidance on navigation of business regulations
- Guidance on formulating quotes and bids
- Dedicated meet-the-buyers’ events
- Tender evaluation criteria that consider reliability and long-term costs

Table 7 Assessment of Capabilities of Domestic Suppliers

A B C D E

Categories Description Value Domestic Capability High Potential

Categories of Description of USD Sufficient Domestic Capability Partial Domestic Capability This particular category offers domestic suppliers
supply agreement goods, ($) Goods and services which Goods and services which domestic significant potential to substantially grow their bus
and sub-contracts equipment or domestic suppliers are already suppliers are capable only if beyond the contract period, competitively replace
 to be placed with service capable and competitive supported by lead contractor or imports, or access global supply chains
domestic without support from lead through a strategic alliance (Yes/No)
suppliers contractor (Yes/No)
TENDERER should provide reasons for high potenti
(Yes/No)
classification of such suppliers

11.0 Support to Domestic Suppliers in Contract Execution

11.1 Tenderer shall describe what practical support, following award of sub-contracts or supply
agreements it will provide to develop the capabilities of domestic suppliers to meet contractual
commitments during contract execution, including, but not limited to, commitments to
schedule/delivery, quality, HSSEQ performance and asset integrity. This may include:

- Encouraging domestic suppliers to adopt internationally competitive standards

- Training and competency development for sub-contractor personnel in execution of their
part of the Contract e.g. technical standards
- Pre-investment in plant, equipment, infrastructure and other facilities to improve execution
of their part of the Contract
- Management supervision, e.g. in project controls, quality assurance
- Assistance to meet the Contract requirements for standardization of procured goods.
Table 8 Support for Domestic Sub-Contractors and Suppliers in Contract Execution

A B
Categories of service agreement or Description and qualification of support to be provided to
sub-contracts to be placed with domestic suppliers to meet contractual commitment
domestic suppliers

12.0 Support to High Potential Domestic Suppliers to Grow their

Business
12.1 Tenderer shall describe what support it shall provide to the sub-set of high potential
domestic suppliers during the contract period to substantially and sustainably grow the
competitiveness of their businesses beyond the contract period, competitively replace imports and
access global supply chains. This may include:

- Letters of commendation
- Accrediting selected suppliers thus opening new markets
- In the final months of sub-contract, facilitating access for selected suppliers to overseas
trade shows, pre-qualification schemes in other countries, technical and financial support
from relevant Government agencies;
- Form strategic partnerships/ alliances

Table 9 Support for Domestic Sub-Contractors and Suppliers in Contract Execution

A B
 High Potential Categories Description and qualification of support to strengthen competitiveness of high
(Categories from column E, Table 7) potential domestic suppliers

13.0 Demobilization and Retrenchment

13.1 Tenderer shall describe its proposals to demobilize National employees, agency staff and sub
contracted personnel released from the Contract during or after the Contract period, including,
retrenchment proposals to maximize the opportunities for those involved in the operations to make
the transition to other employment opportunities.

14.0 Risk Management

14.1 Tenderer shall provide an assessment of the risks to overall contract performance arising
from delivery of its proposed Local Content Management Plan. Tenderer shall list the main risks and
rank them in terms of their probability of occurrence and magnitude of impact. This assessment shall
include, but it is not limited to, consideration of the following risks:

a) Operational schedules/delivery
b) Contract execution, including complexity of management interface
c) Cost escalation
d) Short – term quality control/quality assurance
e) Long - term asset integrity
f) Ethical misconduct
g) HSSEQ compliance
h) Client reputation
i) Risks to third parties e.g. workers and communities
j) Local political risks, including social license to operate with affected communities
k) Industrial disputes, e.g. hiring or sub-contracting of foreign workers

Risks, ranked Column A Column B

 Description of risks Risk Management Measures

Table 10 Qualified Assessment of Risks and Mitigation in Delivering Proposed LCP

15.0 Local Content Estimation

15.1 The Tenderer shall calculate the actual value contributed to the domestic economy as a %
of Contract Bid Price. Tenderer shall complete columns F and G

Table 11 Actual Value Contributed to Domestic Economy

% Local Content
(Contract Price less expenditure on foreign personnel and imported goods and services of foreign origin, as % of the Contract
Price)
P a b c F G
Foreign Content % Local Content

Contract Price ($) ($) ($) ($) F = a+b+c [P-F] *100/P

For Priced Commercial Tender Evaluation Only

Where:

a= equipment, materials and services imported directly (excluding import tariffs, duties and related
handling charges)

b= the proportion of equipment, materials or services purchased in the domestic market that is
imported (excluding import tariffs, duties, related handling charges, value added tax, or equivalent)

c= salaries and bonuses of non-Nationals, excluding expenses and taxes to State of expats and others
employed by virtue of a temporary employment contract or international assignment