Provision of Detailed Design, Technical support, Supply and Delivery - Eskom

Returnable Documents:

The intention of this specification is to specify and describe the minimum quality requirements for all existing and potential Eskom suppliers and define the quality criteria for the selection, evaluation, vendor registration, management, monitoring, assessment and auditing of suppliers. Eskom’s position is to partner with suppliers who fully demonstrate commitment to the development, implementation, and maintenance of a quality management system (QMS) that conforms to the requirements of ISO 9001 standard. The priority is to encourage suppliers to continually improve their QMS and enhance service delivery by implementing and conforming to the standard. 2. Supporting Clauses 2.1 Scope 2.1.1 Purpose The purpose of this specification is to outline the requirements according to which suppliers shall  develop,  implement,  maintain, and  continually improve a quality management system (QMS) based on ISO 9001, which should form the basis for conformity to Eskom quality requirements and continually adhere to them throughout the duration of a contract 2.1.2 Applicability This specification shall apply throughout Eskom Holdings Limited divisions, its subsidiaries, suppliers, and sub-suppliers and shall form part of all Eskom requests for information (RFI)/ requests for quotation (RFQ)/ requests for proposal (RFP), including contracts for the procurement of products and services. 2.1.3 Effective date Date of authorisation of the specification 2.2 Normative/Informative References Parties using this document shall apply the most recent edition of the documents listed in the following paragraphs. 2.2.1 Normative [1] ISO 9001 Quality Management Systems – Requirements [2] ISO 10005 Quality Management Systems – Guidelines for Quality Plans. 2.2.2 Informative [3] ISO 9000 Quality Management Systems – Fundamentals and Vocabulary [4] 32-727: Safety, Health, Environment, and Quality (SHEQ) Policy [5] ISO 10006 Quality Management Systems – Guidelines for Quality Management in Projects CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: [6] ISO 9004 Quality Management – Quality of an Organisation – Guidance to Achieve Sustained Success [7] 32-1033: Eskom’s Procurement and Supply Chain Management Policy [8] 32-1034: Eskom’s Procurement and Supply Chain Management Procedure [9] PPPFA: Preferential Procurement Policy Framework Act, 2000 (Act No. ) [10] CIDB 1004: Best Practice Guideline A4: Evaluating Quality in Tender Submissions [11] 240-12248652 Supplier Quality Management: List of Tender Returnables [12] IAEA Safety Standard GS-R-3.1 Application of the Management System for Facilities and Activities [13] SANS 10845-1 Construction Procurement Part1: Processes, Methods and Procedures 2.3 Definitions The vocabulary of ISO 9000 and the following definitions apply in the application of this specification. 2.3.1 Component: a constituent part of the product or sub-assembly of the product. The product may comprise multiple individual components 2.3.2 Contract Quality Plan: a document of the supplier’s process for delivering the level of quality required by the contract. It is a framework for the contractor’s process for delivering quality. Purpose of a CQP is to outline how the results defined in the specifications will be achieved. 2.3.3 Hold Point: a predetermined stage in the quality control plan (QCP) beyond which work/ manufacturing shall not proceed without the attendance of, and written authorisation of, an Eskom representative or Eskom inspection agency, whichever is applicable. 2.3.4 Intervention Points: those control points indicated by the various controlling bodies concerned with the implementation of a specific QCP/ ITP. These can be in the form of inspection, hold points, surveillances, witnesses, reviews and verifications. 2.3.5 Inspection Agency: an organisation or person appointed by Eskom for the purpose of performing quality assurance/ quality control, monitoring, inspection and/ or expediting services. 2.3.6 Level 1 Plant Items: equipment, whose failure has an effect on personnel safety and/ or health, causes an environmental incident, cause a huge production loss or major equipment damage. Equipment that are safety/ redundancy/ protective device or covered by statutory regulations requirements. 2.3.7 Level 2 Plant Items: equipment, whose failure impacts plant availability and/or reliability, causes significant costs or secondary damage. 2.3.8 Level 3 Plant Items: equipment that does not impact on personnel safety and/ or health, environmental, cost, availability and/ or reliability of plant. 2.3.9 Nonconformity: a deficiency in material, composition, characteristic, or performance that renders the quality of an item, component, or product unacceptable or indeterminate. The term also covers a deficiency in, or deviation from/non-adherence to, the quality management system requirements, prescribed production processes, and/or related documentation such as procedures and instructions. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 2.3.10 Quality Plan: specification of the actions, responsibilities and associated resources to be applied to a specific object. 2.3.11 Quality Control Plan: a document specifying the activities to be inspected throughout the execution of the project, inclusive of test methods, procedures, and acceptance criteria (This term is equivalent to QIP and ITP). 2.3.12 Requirement: the need or expectation that is stated, generally implied, or obligatory. Requirements are generally specified in the purchase order and/or contract documentation, but may not be limited to these. 2.3.13 Primary Plant (Power Plant): primary plant include High Voltage equipment situated inside the control room (breakers, bus-bars, CT’s, VT’s and transformers). 2.3.14 Secondary Plant (Control Plant): secondary plant includes all equipment used to control and protect the HV equipment on the primary plant side. (Protection, metering, AC/DC and tele-control). 2.3.15 Special Process: is any production or service process which generates products or services which cannot be measured, monitored, or verified prior to delivery and use. 2.3.16 Supplier: is a current or potential supplier, vendor, contractor, consultant, or service provider. A supplier may be a natural or legal person and includes any employee acting within the course and scope of his/her employment or any agent or manager acting for, or on behalf of, or in the interests of, the person registered as supplier on the Eskom supplier database. 2.3.17 Sub-supplier: an organisation that provides a product/service to the supplier and/or that enters into a subcontract and assumes some of the obligations of the supplier or prime contractor. 2.3.18 Witness Point: a predetermined stage in the quality control plan where and inspection activity will take place. Work may proceed, provided Eskom or its inspection agency has been formally notified and confirmed that inspection is waived. 2.4 Abbreviations Abbreviation Explanation AIA Approved Inspection Authority CA Corrective Action CQP Contract Quality Plan FIDIC Federation Internationale Des Ingenieurs- Conseils FMECA Failure Mode, Effects and Criticality Analysis HAZOP Hazard and Operability Study ISO International Organisation for Standardisation ITP Inspection and Test Plan NC Nonconformity NDT Non Destructive Testing PMI Positive Material Identification QCP Quality Control Plan CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: Abbreviation Explanation QMS Quality Management System PQP Project Quality Plan RFI Request for Information RFQ Request for Quotation RFP Request for Proposal SHEQ Safety, Health, Environment, and Quality SETA Skills Education Training Authorities WPS Welding procedure specifications WQR Welder’s Qualification Record 2.5 Roles and Responsibilities Eskom Quality representative/ professional will select applicable requirements for existing and potential Eskom suppliers using Form A (Tender and Contract Quality Requirements for Supplier Quality Management: Specification 240-105658000/ QM 58 and Quality Requirements for ISO 9001 Standard). The existing and/ or potential suppliers must complete, sign and return Form A with the other returnable as listed in the List of Tender Returnable document (240-12248652). Other roles and responsibilities for this standard are defined within the text of this specification. 2.6 Process for Monitoring The application of this specification throughout Eskom shall be audited as per the management system audit schedule. 2.7 Related/Supporting Documents The documents superseded by this specification: all divisional and business unit supplier quality requirements standards and/or specifications. Forms and templates: [1] 240-68099512 Tender and Contract Quality Requirements for Supplier Quality Management Specification 240-105658000/ QM 58 and Quality Requirements for ISO 9001 Standard (Form A) [2] 240-109253698 Template for a Typical Contract Quality Plan [3] 240-109253302 Quality Control Plan/Inspection and Test Plan [4] 240-126469599 Method Statement Template. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3. Pre-Contract Award: Quality Requirements The quality assessment criteria and Form A of this specification will be selected and completed by an Eskom Quality representative/ professional who will identify the applicable supplier quality requirements to be met. Form A of this specification must also be completed and signed by the supplier responding to an Eskom invitation to tender, in order to acknowledge and accept Eskom Supplier Quality requirements as per this specification and ISO 9001 Standard or any additional quality requirements specific to the scope of work. 3.1 Supplier and Sub-Supplier Quality Management System Requirements 3.1.1 The supplier and sub-supplier shall develop, implement, maintain and improve a formal QMS that conforms to the latest ISO 9001 standard or any applicable standard of QMS (latest applicable revision) and in accordance with the requirements of this specification. 3.1.2 Such a formal system shall consist of the appropriate documented information required by ISO 9001 and may include a quality manual, quality plans, work procedures, work instructions, method statements, work flow documentation, etc., as the case may be. This requirement constitutes the most basic QMS requirements. 3.1.3 Unless specifically excluded from the quality list of tender returnable, as per the categories of quality requirements (Category 1, 2, 3, or 4), such a QMS shall carry a valid ISO 9001 certificate from an accredited certification body, as indicated in the applicable Eskom invitation (this requirement applies equally to both the supplier and any/ all manufacturing third-party organisations mentioned above). 3.1.4 Unless specifically excluded in the quality list of tender returnable, as per the categories of quality requirements (Category 1, 2, 3, or 4), the supplier shall have a fully developed, documented, implemented, reviewed and maintained QMS that complies with the requirements of ISO 9001 standard or any applicable standard of QMS. In the event that the main supplier invariably requires the assistance of a sub-supplier in order to realise its own supply obligations. The aforementioned requirement applies equally in all cases where any such sub-supplier’s scope of responsibility includes the provision of any of the following activities, namely, design and development, manufacturing, maintenance, testing, storage, delivery, installation, commissioning, and project management, or in the cases the supplier name changes, mergers, acquisitions and/ or cessions. Eskom Quality department must ensure that the changed entity can still fulfil the requirements as set out in the contract documentation. 3.1.5 Eskom reserves the right to request and perform necessary assessments at sub-supplier facilities. 3.1.6 The main supplier shall be responsible for defining and managing the specific quality assurance and control elements applicable to the respective sub-supplier’s scope of work/supply and ensure that its sub-supplier(s) quality programmes support Eskom requirements. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.1.7 The supplier shall inform Eskom of any proposed changes to the QMS or staff that will affect the quality system prior to implementation of these changes. 3.1.8 The main supplier shall develop and implement a performance management programme for their sub-supplier. The programme shall include, but not limited to:  Verification of the QMS  Audits and surveillances  Regular assessment of the CQPs and reviews of QCPs.  NC and Defect Management  Inspection and test plans  Risk management 3.2 Quality Plan The information in this section constitutes the minimum requirements for a quality plan. 3.2.1 Where specified in the Evaluation Criteria and/ or quality list of tender returnables , as per the categories of quality requirements (Category 1, 2, 3, or 4); all individual products, services and processes shall have a documented, implemented, reviewed and maintained contract quality plan and/or quality control plan (inspection and test plan). 3.2.2 Where specified in the evaluation criteria and/ or quality list of tender returnables. All production and/ or service provision shall be carried out in accordance with a documented and agreed contract quality plan (CQP) and/ or quality control plan (QCP)/ inspection and test plan (ITP). 3.2.3 The supplier shall plan for the required quality-related activities and interfaces within the supplier’s quality system in order to demonstrate its ability towards both controlling and meeting specified Eskom requirements. Note 1: Contract Quality Plan should address the quality assurance elements related to the scope of work and/ or technical specification. Note 2: Quality Control Plan (QCP)/ Inspection and Test Plan (ITP) should address the quality control elements related to the scope of work and/ or technical specification. 3.3 Contract Quality Plan The main supplier shall require sub-suppliers to submit project quality plans (PQPs)/ contract quality plans (CQPs) and associated documentation in accordance with the requirements of project QMS processes applicable to the sub-supplier’s scope of work. The supplier shall, where applicable, based on scope of work criticality, ensure that procurement documents clearly and unambiguously require sub-supplier submission of a sub-supplier CQP for supplier and Eskom review. The main supplier shall ensure that sub-supplier CQPs are developed and implemented in accordance with the ISO 10005 Quality Management System Guidelines for Quality Plans. In addition to the elements specified in ISO 10005, the supplier’s and/ or sub-suppliers’ CQPs shall include the following (as applicable): CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.3.1 The management of records, including material tests, positive material identification (PMI) testing, material certification, etc. 3.3.2 The provision for free and uninhibited access by the supplier and/or personnel at the time of inspection. 3.3.3 The proposals for submission of final documentation, the final manufacturing data book, prior to shipment. 3.3.4 The special processes related to welding: management of the welder’s qualification record (WQR), welding procedure specifications (WPS), and procedures qualification records (PQR) that will be used in the performance of work for supplier review and acceptance prior to commencing manufacture. Welders shall be qualified to the specified Codes of Construction for the applicable procedures. The requirements for qualification shall be specified by the supplier, and welder records shall be maintained by sub-suppliers performing the work. 3.3.5 The special installation procedures and other required fabrication or manufacturing procedures (that is, those required for post-weld heat treatment, tube rolling, coatings, etc.) that will be used in the performance of work shall require supplier review and acceptance prior to commencing manufacture. The personnel carrying out special processes (for example, NDE, welding, coating, heat treatment, etc.) where the results cannot be fully verified by subsequent inspection and test shall be suitably qualified and, where applicable, registered with statutory bodies as legally required, that is, as radiographic workers to conduct radiography. The requirements for the qualification shall be specified, and personnel records shall be maintained in accordance with the Project Quality Personnel Qualification Specification and, where applicable, legal requirements. 3.3.6 The personnel required to perform special processes shall be certified competent through a certificate of competency in accordance with the company’s internal training management and competency control procedures or an external certification body (for example, NDT) through an accredited service provider as per Skills Education Training Authorities (SETA) requirements. 3.3.7 All personnel who perform activities that affect quality shall have their training needs identified and documented. The required training shall be implemented in accordance with the company’s training management and competency control procedures. All the training certificates shall meet the SETA requirements in terms of having the unit standard completed and the accreditation number of the service providers. 3.3.8 Instructions and requirements for equipment and materials storage, preservation, and maintenance, including identification of materials required for preservation and maintenance, are to be provided sufficiently prior to receipt (prior to shipment or earlier) to ensure that appropriate resources are available at the time of delivery. 3.3.9 Specific quality monitoring and verification activities are to be undertaken on the supplier’s sub-suppliers by Eskom or it agent. 3.3.10 The CQP information need to include, but not limited to:  Spells out the aspects of the QMS to be applied within a specific Eskom project, and the methods to be utilised to ensure quality.  Outline the resources, the communication channels, applicable documents and records to be generated.  Management Authority and Responsibility from both supplier and client need to outline in the CQP. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page:  List of documents and records that will be used and submitted during the execution of the project.  Communications channels should include contact person and contact details  Monitoring & measurement procedures for activities need to be indicated. 3.3.11 The main supplier and sub-supplier CQPs shall comply with the Eskom Quality Requirements Specifications and shall be submitted prior to the initial scope of work kick-off or initial pre- fabrication meeting and prior to commencement of manufacturing, whichever is earlier. 3.3.12 The Eskom template for CQP provided shall be used as guideline, where the supplier does not have a CQP template. 3.4 Quality Control Plan The supplier shall develop and implement processes and procedures that efficiently and effectively monitor, verify and document the quality of the scope of work for deliverables. The main supplier shall ensure that sub-supplier QCPs/ ITPs are prepared at a level of detail sufficient to address all quality-control-related activities in a chronological order, from contract review through materials verification, manufacturing, fabrication, assembly, final testing, commissioning, hand-over documentation, and certification. In addition, the supplier shall ensure compliance with the following requirements: 3.4.1 All stages of manufacturing, fabrication, assembly and installation shall be controlled by a supplier’s QCP/ ITP that clearly and unambiguously identifies the quality verifications to be performed and special attention to controls related to critical products and services. 3.4.2 QCP/ ITP shall be reviewed and accepted by Eskom, its inspection authority or agency, and they shall allow for the insertion of Eskom specific requirements, including hold and witness points prior to the commencement of work. 3.4.3 Subsequent changes to the Eskom accepted QCP/ ITP shall require Eskom, its inspection authority or agency’s agreement prior to the commencement of work involving an activity affected by such changes. 3.4.4 The ITPs should cover materials certification, fabrication works, in-process inspections, final acceptance tests, packaging and pre- shipment/ transportation, shipping/ transportation inspections where contracted, preservation, site acceptance tests, construction and erection works, and pre-commissioning and commissioning tests. 3.4.5 All sub-supplier QCP/ ITP activity shall be performed using an Eskom-accepted supplier QCP/ ITP. 3.4.6 All applicable codes, standards, and relevant acceptance criteria documents are available at the work location, and Eskom representatives on site shall have on-going access to this information. Workplace documentation shall be available in English and in any workforce- appropriate language. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.4.7 Where activities subject to inspection and test procedures are to be undertaken by a sub- supplier, the QCP/ ITP shall make reference to this fact and shall include descriptive details of the sub-supplier’s involvement. A separate QCP/ ITP shall be required for each sub- supplier scope of work. 3.4.8 The supplier shall be ultimately accountable and responsible for the development and proper implementation of all sub-supplier QCPs/ ITPs, including those reviewed or developed by sub-suppliers. 3.4.9 Eskom reserves the right to select intervention points on QCPs/ ITPs for Eskom oversight of selected functions and to perform surveillance or audits of the work. 3.4.10 Once signed, the ITPs and QCPs become addendums to the main contract. These ITPs can be reviewed at Eskom’s discretion based on its assessment of the supplier’s performance or other risks. 3.4.11 A QCP/ ITP shall contain the following information:  Eskom contract number and title  The supplier’s order number  Identification of the area of works/contract  Description of the work, with components, item number, and activity date  QCP/ITP unique number  A list of the sequence of operations, including inspection and tests  The identification of the specification, drawing number, or procedure for each operation, with reference to the relevant criticality risk rating  The acceptance criteria, with reference to the technical specification, in-house, national, or international standard, with the relevant clause number for each operation  The inspection and test activities that the supplier has nominated for its intervention points  Provision for the inclusion of intervention points nominated by Eskom and/or its authority/ agency  Provision for intervention point acceptance by date and signature for all parties having intervention in the plan  Inspection and test records to be generated by the supplier for each operation and an indication of records to be provided to Eskom (as applicable) 3.4.12 The main supplier shall require sub-suppliers to submit QCPs/ ITPs and associated documentation applicable to the sub-supplier scope of work. Any changes made to the QCP after submission must be resubmitted to Eskom for further review. The supplier shall ensure that all sub-supplier QCPs/ ITPs are in compliance with the Eskom Quality Requirements Specifications, including, but not limited to, the following requirements:  Clear and unambiguous description of the equipment and location(s) at which each activity will take place, including facility location(s)  Identification of quality verification activity and stage  The details of reference documents, procedures, or method statements to be utilised in performance of the activity, including specific reference to actual sections and pages of procedures, standards, instructions, specifications, etc. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page:  Definition of acceptance criteria  Listing of certifying or verifying documents generated to provide evidence of compliance with specified requirements; documents are to be provided using the proper Eskom document numbering requirements  Identification of main supplier and sub-supplier (where applicable) third-party/approved inspection authority (AIA) and Eskom inspection activities defined in terms of witness, hold, document review, and verification monitoring points and provision for sign-off of each of the above-mentioned parties for each intervention point  Qualification requirements for quality control inspectors, including any third-party/AIA inspectors  Listing of all proposed test procedures  Acceptance criteria for each inspection or test in alignment with specified tolerances  A section for signed acceptance of the QC/ITP by the supplier, sub-supplier (where applicable), and Eskom prior to commencement of work  Inspection or testing intervention points, including, but not limited to, factory acceptance test and package acceptance test, witness, and hold points 3.4.13 A quality kick-off meeting will be held at the start of the contract and, if required, at the start of each subsequent phase.  The supplier shall arrange coordination meetings with Eskom prior to placement of orders for items or equipment to ensure that all technical and commercial requirements are clear and understood. Fourteen days’ advance notice of meetings shall be given to Eskom.  Supplier inspection personnel, including inspection agency personnel, shall be competent and qualified to perform inspection and testing assignments. Mobilisation of all such personnel shall be in compliance with the Project Quality Personnel Qualification Specification. 3.4.14 Where QCP/ ITP is applicable, the supplier shall ensure that sub-suppliers are provided with comprehensive, clearly written, and unambiguous inspection and testing protocols, including processes, procedures, and methods that shall include, but not be limited to, the following:  Requirements for inspection checklists and inspection assignments, with lists of items to be inspected  An inspection and testing report format, report content, schedule for report processing and distribution, and report retention requirements  Inspection and test report results response tracking (log) and resolution of nonconformity in inspection and test processes, procedures, or methods and nonconformity identified in inspection and test results  Associated Failure Mode, Effects and Criticality Analysis (FMECA) reports relating to the equipment and sub-systems (if applicable)  Hazard and Operability Study (HAZOP) report, as applicable CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.4.15 The supplier shall establish processes and procedures for formal assessment of sub-supplier inspection and testing programmes. These shall include review of sub-supplier inspection reports and other quality control documentation. Additional formal assessment of manufacturing, fabrication, and assembly facility operations shall be conducted by the supplier to ensure continuing suitability, adequacy, and effectiveness of the sub-supplier’s inspection and testing programmes. Assessment frequency shall be established in consideration of the sub-supplier scope of work, criticality of scope of work deliverables, and performance information. The assessment scope and schedule shall be developed in consultation with Eskom. 3.4.16 Supplier processes and procedures for verification of supplier and sub-supplier purchased product compliance with specifications shall obtain document return/review status prior to implementation. 3.4.17 The objective is to finalise any outstanding procedural or other issues before proceeding to deliver the works. 3.4.18 Eskom, in consultation with the supplier, develops an agenda for the meeting, and Eskom will keep minutes of these meetings. 3.4.19 Mandatory pre-inspection meetings will be convened by Eskom or its inspection agency or AIA to be attended by the supplier’s and sub-supplier’s representatives, including their quality representatives who will be involved in the works, and records are to be kept. 3.4.20 Eskom reserves the right to appoint resident quality inspectors who can be based at the supplier’s or sub-supplier’s premises and on site where the work is being performed. The supplier is expected to provide workspace at no cost to Eskom for the inspector, as required. 3.4.21 Eskom may appoint any organisation it prefers to perform quality assurance and quality control activities, either in the capacity as an AIA or inspection agency, on the works contracted to the supplier, and the supplier or its sub-suppliers may not object, prevent, hinder, undermine, circumvent, question, discredit, or in any way make it impossible for such organisation to carry out its work on behalf of Eskom. 3.4.22 The Eskom template for QCP/ ITP provided shall be used as guideline, where the supplier does not have a QCP/ ITP template. 3.5 Pre-Contract Award: Quality Requirement 3.5.1 Main Supplier and Sub-supplier Categories Eskom supplier quality requirements for all existing and potential suppliers and sub-suppliers are classified into four categories (category 1, 2, 3 and 4). Suppliers must prepare and submit quality documentation as per the tender selected category (indicated in Form A) using the list of tender returnables document. NOTE: Only one (1) category must be applicable per procurement process e.g. [Eskom requests for information (RFI)/ requests for quotation (RFQ)/ requests for proposal (RFP), including contracts for the procurement of products and services]. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: The following are the minimum returnable documentation for Categories 1 to 4: 3.5.2 Category 1: Quality Requirements  The supplier shall complete and sign Form A (Enquiry/Contract/Quality Requirements for Supplier Quality Management Specification 240-105658000/ QM 58 and ISO 9001).  The supplier shall submit a valid copy of ISO 9001 or any applicable certificate of a QMS (the latest applicable revision). The QMS should drive the supplier’s business management processes to ensure that all of Eskom’s requirements are fully met on a consistent basis.  The supplier shall submit the latest copy of the management system internal and external audit reports. The audit reports must include, if applicable, nonconformity identified, and the resulting remedial actions (correction and/ or corrective action reports).  The supplier shall submit a draft contract quality plan that is specific to the scope of work as described in the tender documents. The plan must address the minimum requirements as per ISO 10005.  Where applicable; the supplier shall submit a draft, or an example of an inspection and test plan (ITP) or quality control plan (QCP) on similar and/ or previous work done.  The supplier shall submit documented information for Control of Externally Provided Processes, Products and Services.  The supplier shall submit a copy of documented information for roles, responsibilities and authorities in relation to the QMS. Examples of relevant documented information are; organization charts, job descriptions, work instructions, duty statements, manuals, procedures.  The supplier shall submit documented information retained (records) of management review meetings that include agenda, meeting minutes, attendance registers, reports, presentations, etc. Note: specific requirements per tender will be selected using the List of Tender Returnable documents (240-12248652). 3.5.3 Category 2: Quality Requirements  The supplier shall complete and sign Form A (Enquiry/Contract/Quality Requirements for Supplier Quality Management Specification 240-105658000/ QM 58 and ISO 9001).  The supplier shall submit objective evidence of a developed, implemented and maintained QMS that complies with ISO 9001 or any applicable standard of quality management system (the latest applicable revision). The following documents (approved/ signed copies) shall be submitted:  Quality Management System manual or a documented information that have defines and describes the QMS and its scope  Quality Policy, aligned with the supplier’s strategic direction (documented information)  Quality Objectives (documented information)  Control of documented information (both maintain and retain documented information )  Internal audit procedure (documented information)  Control of nonconforming outputs (documented information)  Nonconformity and Corrective action procedure (documented information) CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: The QMS should drive all the supplier’s business management processes to ensure that all of Eskom’s requirements are fully met on a consistent basis.  The supplier shall submit the latest copy of the management system internal audit reports. The audit reports must include, if applicable, nonconformity identified, and the resulting remedial actions (correction and/ or corrective action reports).  The supplier shall submit a draft contract quality plan that is specific to the scope of work as described in the tender documents. The plan must address the minimum requirements as per ISO 10005.  Where applicable; the supplier shall submit an example of inspection and test plan (ITP) or quality control plan (QCP) on similar or previous work done.  The supplier shall submit documented information for Control of Externally Provided Processes, Products and Services.  The supplier shall submit a copy of documented information for roles, responsibilities and authorities in relation to the QMS. Examples of relevant documented information are; organization charts, job descriptions, work instructions, duty statements, manuals, procedures.  The supplier shall submit documented information retained (records) of management review meetings that include agenda, meeting minutes, attendance registers, reports, presentations, etc. Note: specific requirements per tender will be selected using the List of Tender Returnable document (240-12248652). 3.5.4 Category 3: Quality Requirements  The supplier shall complete and sign Form A (Enquiry/Contract/Quality Requirements for Supplier Quality Management Specification 240-105658000/ QM 58 and ISO 9001).  The supplier shall submit objective evidence of a developed QMS that complies with ISO 9001 (or the latest applicable revision). The following documented information (approved/ signed copies) shall be submitted: o Quality management system manual or a (documented information) that have defines and describes the QMS and its scope o Quality Policy, aligned with the supplier’s strategic direction (documented information) o Quality Objectives (documented information) o Control of documented information (both maintain and retain documented information ) o Internal audit procedure (documented information) o Control of nonconforming outputs (documented information) o Nonconformity and Corrective action procedure (documented information) The QMS should drive all the supplier’s business management processes to ensure that all of Eskom’s requirements are fully met on a consistent basis. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page:  The supplier shall submit a draft contract quality plan that is specific to the scope of work as described in the tender documents. The plan must address the minimum requirements as per ISO 10005.  Where applicable; the supplier shall submit an example inspection and test plan (ITP) or quality control plan (QCP).  The supplier shall submit documented information for Control of Externally Provided Processes, Products and Services.  The supplier shall submit a copy of documented information for roles, responsibilities and authorities in relation to the QMS. Examples of relevant documented information are; organization charts, job descriptions, work instructions, duty statements, manuals, procedures. NB: specific requirements per tender will be selected using the List of Tender Returnables document (240-12248652). 3.5.5 Category 4: Quality Requirements  The supplier shall complete and sign Form A (Enquiry/Contract/Quality Requirements for Supplier Quality Management Specification 240-105658000/ QM 58 and ISO 9001).  The supplier shall submit a quality method statement based on ISO 9001 and specific to the scope of work.  The quality method statement should address all the supplier’s business management processes to ensure that all of Eskom’s requirements are fully met on a consistent basis.  The supplier shall submit a signed/ approved quality policy (aligned with the supplier’s strategic direction). (documented information)  The supplier shall submit a copy of quality objectives. (documented information)  The supplier shall submit documented information for Control of Externally Provided Processes, Products and Services.  The supplier shall submit a copy of the documented information for roles, responsibilities and authorities, specific to the project/ scope of work/ technical requirements. Examples of relevant documented information are; organization charts, job descriptions, work instructions, duty statements, manuals, procedures. Note: specific requirements per tender will be selected using the List of Tender Returnables document (240-12248652). 3.6 Main Supplier and Sub-supplier Capability and Capacity Assessment Supplier capability and capacity assessments shall be performed prior to contract award on potential suppliers participating in Eskom Holdings procurement process to:  provide products and services with high risk to operational sustainability  work on critical plant and equipment  supply of critical plant items or components  provide special processes CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: All sub-suppliers used by the main supplier/ contractor, performing work on Eskom critical plant equipment, supplying commodities and providing specialised services shall be subjected to the capability and capacity assessment. Critical plant includes the following:  Generation Level 1 & 2 plant  Transmission and Distribution Power Plant & Control Plant  Mega Projects All potential quality risks identified will be included in the assessment report provided for the tender evaluation. Note: Form A (Enquiry/ Contract/ Quality Requirements for Supplier Quality Management: Specification 240-105658000/ QM 58 and ISO 9001) will be used to select and indicate whether capability and capacity assessment will be conducted. 3.7 Post-Contract Award 3.7.1 Contract Execution The supplier shall submit the following documents within 30 days or as per stated timeline after the contract date, prior to the commencement of work, for acceptance by Eskom:  The supplier shall complete a QCP before contract award. This shall be reviewed and signed off by Eskom within 30 days or as per stated timeline after contract award.  The supplier shall complete a quality control plan and ITP(s) for review and acceptance by Eskom prior to the commencement of any work, inclusive of subcontracted work, within 30 days or as per stated timeline after contract award.  The sub-supplier QCP/ ITP shall be submitted for review and comment by the supplier and by Eskom within 30 days or as per stated timeline after the award of the tender. All supplier and Eskom comments shall be resolved prior to commencing work.  The equipment lists and an indication of pressurised components and systems. Note: These plans are to be compiled in line with Eskom’s requirements and will have to be discussed with, and approved by, Eskom prior to any work commencing.  Correspondence shall be directed to the project manager, and periodic quality review meetings shall be convened by Eskom with the supplier.  The mandatory quality review meetings are to be convened by the nominated project quality manager or his/her representative for the contract.  Monthly quality performance and management reports are to be prepared by the supplier during contract execution. The content of these reports shall be agreed by Eskom when submitted to Eskom on a monthly basis. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.7.2 Supplier Quality Performance Monitoring Phase During the contract execution phase, suppliers shall be monitored by Eskom for performance on quality-related aspects. The outcomes of such monitoring will enable Eskom to take any appropriate actions pertaining to the supplier. The monitoring shall be carried out periodically by Eskom or at predetermined intervals during the execution of a contract using agreed key performance indicators. The monitored key performance areas include the following:  CQP and QCP /ITP  Delivery  Design  Cost  Management system Subsequent key performance indicators associated with these areas will include the following:  Nonconformity monitoring  Audit and assessment evaluation scoring  Management system compliance and accreditation  Achievement of delivery targets as per contractual agreements  Process improvements  Correction and corrective action response and closure 3.7.3 Supplier Quality Audit 3.7.3.1 Quality audits and related quality performance reviews are intended to provide an objective evaluation of compliance with performance expectations defined in this specification, in the supplier contract quality plan (CQP), and in any other project scope of work specification. 3.7.3.2 Quality audits and related quality performance reviews include, but are not limited to, any quality or other project functional area audits, assessments, verification of compliance reviews, surveillance, inspections, or other interim or final assessments of scope of work deliverables provided by the supplier or sub-suppliers 3.7.3.3 Quality audits and related quality performance reviews are intended to provide an objective evaluation of compliance with performance expectations defined in this specification, in the supplier contract quality plan (CQP), and in any other project scope of work specification. 3.7.3.4 Quality audits and related quality performance reviews include, but are not limited to, any quality or other project functional area audits, assessments, verification of compliance reviews, surveillance, inspections, or other interim or final assessments of scope of work deliverables provided by the supplier or sub-suppliers. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.7.3.5 Quality audits and related quality performance reviews shall be carried out by trained, accredited, and experienced personnel in accordance with procedures documented in the CQP. 3.7.3.6 The supplier shall submit, for Eskom review, documented processes for conducting project scope of work quality audits and related quality performance reviews. Supplier quality audits and related quality performance review processes shall be designed to address evaluation of progress towards completion of project functional area deliverables as well as final deliverable quality. 3.7.3.7 The supplier shall provide a schedule of anticipated quality audits covering all functional areas and related quality performance reviews at the time of first post-contract award CQP submission. 3.8 Standard Conditions 3.8.1 Rights of Access Eskom: 3.8.1.1 shall be granted electronic and hard-copy access to all quality plans, procedures, documentation, and other quality records relating to the work, including, but not limited to, data extracts; 3.8.1.2 reserves the right to review, inspect, and audit any or all parts of the supplier’s QMS, as well as any documentation, materials, or equipment associated with the work, at any time or project work location; and 3.8.1.3 reserves the right to carry out assessments and audits on all new suppliers and sub- suppliers. The supplier: 3.8.1.4 shall support Eskom’s effort to monitor, verify, and/or witness any activities associated with the work at any time; 3.8.1.5 shall cooperate with Eskom requests for documentation, records, and inspection and witnessing. Eskom participation in audits, appraisals, assessment of plans, and verification shall be conducted at no extra cost to Eskom; 3.8.1.6 shall ensure that a sub-supplier provides access to Eskom to all work procedures, records, and supporting documentation through provision of access to view and photocopy, as required, to support verification of scope of work requirements. Access shall include the ability to photograph Eskom equipment, systems, system components, materials, etc.; 3.8.1.7 shall provide access to all quality-related information pertaining to activities performed by itself or sub-suppliers, where Eskom might not have participated in the witnessing of their quality assurance or control (this refers to inspections, audits, etc. performed by the supplier on its own sub-suppliers); 3.8.1.8 shall allow Eskom to assess, audit, approve, or reject any sub-suppliers employed by Eskom’s suppliers to assist with the product and/or service delivery to Eskom; and 3.8.1.9 shall ensure that the above requirements flow down to sub-suppliers. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.2 Eskom Rights to Information 3.8.2.1 To expect that the works will be conducted in accordance with the contract between the parties. 3.8.2.2 To have access to the supplier’s information as determined by applicable legislation. 3.8.2.3 Eskom reserves the right to oversee the supplier’s audit programmes by participating in selected audits as an observer and by assessing the supplier during key work stages. Eskom will coordinate with the supplier to develop an oversight schedule aligned with the supplier’s audit schedule. 3.8.2.4 To obtain access to any audit reports of audits performed by the supplier reflected in the audit programme. 3.8.2.5 To conduct independent quality audits during all phases of the contract, and the supplier shall provide all resources to support these activities. 3.8.2.6 Eskom shall have the right to participate in, or request that, a technical investigation be launched and conducted at the supplier’s and sub-suppliers’ premises or other sites when risk to Eskom products or service deliverables is identified. 3.8.2.7 To participate in, and/or lead, investigations related to incidents involving its products. 3.8.2.8 To require from suppliers to be responsible for the cost of re-inspections. 3.8.2.9 To withhold payment from suppliers as a result of outstanding nonconformities, irrespective of the agreed payment schedule and in accordance with the conditions of contract. 3.8.2.10 Shall be granted electronic and hard-copy access to all quality plans, procedures, documentation, and other quality records relating to the work, including, but not limited to, data extracts. 3.8.2.11 Reserves the right to review, inspect, and audit any or all parts of the supplier’s QMS, as well as any documentation, materials, or equipment associated with the work, at any time or project work location. 3.8.2.12 Shall carry out assessments and audits on all new suppliers and sub-suppliers. 3.8.2.13 Reserves the right to appoint resident quality inspectors who can be based at the supplier’s or sub-supplier’s premises and on site where the work is being performed. 3.8.2.14 Reserves the right to select intervention points within all developed supplier QCPs/ ITPs for Eskom oversight of selected functions and to perform surveillance or audits of the work. 3.8.2.15 Shall be given access at all reasonable times before, during, and after manufacture and before delivery, construction, erection, and commissioning to measure, test, and inspect the products and workmanship, as necessary, at the supplier’s premises and at Eskom sites. 3.8.2.16 Reserves the right to suspend any pending deliveries by the issuing of a cease delivery order at any time and for any portion of the work that is not being performed in accordance with the specified/agreed requirements. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.3 Preservation The supplier shall develop and implement a comprehensive preservation programme consisting of plans, processes, procedures and actions undertaken for the purpose of planning for and maintenance of material deliverables quality. The supplier preservation programme scope includes, but is not limited to, the following: 3.8.3.1 Engagement of personnel suitably qualified for oversight of, and (as required) direct implementation of, preservation programme requirements. 3.8.3.2 Development and implementation of preservation programme training appropriate to work need. 3.8.3.3 Eskom may make use of its appointed service provider tasked to provide a full suite of services encompassing an online monitoring system and asset tracking during, but not limited to the following stages: inspections, testing, shipping, transportation, storage, and commissioning. The supplier is to enable full access during all of these stages in order to allow the installation of the devices on Eskom-identified products and equipment, which include the sub-supplier’s testing facilities, processing plant, and any other processes deemed important towards effective and efficient quality control. 3.8.3.4 Eskom seeks cooperation between the supplier’s designers and those of Eskom’s service provider in ensuring seamless installation of the device and other associated installations. Moreover, there is also a need to integrate data flows and systems between Eskom and the supplier. Further details are included in the Eskom specifications and works information. 3.8.3.5 Review and tracking of compliance with Eskom and supplier engineering specification of preservation requirements. 3.8.3.6 Review and tracking of compliance with sub-supplier provided preservation requirements and recommendations. 3.8.3.7 Evaluation of prospective temporary and longer-term material storage sites for consistency with preservation programme expectations. 3.8.3.8 Preservation work plan development and plan execution performance evaluation of all parties engaged for provision of material transportation, handling, or storage services. 3.8.3.9 Oversight of material quality preservation plan preparation and plan execution performance at all work locations. 3.8.3.10 Development of a preservation programme records management process, in compliance with Eskom information management requirements, which comprehensively addresses generation, maintenance, and ready access by Eskom to all preservation programme records. 3.8.3.11 The supplier shall deploy a clearly defined documented programme providing for identification of all physical asset pre-operation preservation of quality requirements. In this reference, the term “physical assets” should be understood to include bulk materials, including consumable items, equipment systems, system components, and any other procured or supplied materials or equipment transferred to project control, but not deployed for operational purposes. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.3.12 Where the project responsibility for equipment and materials management has been formally delegated, the supplier’s preservation programme shall ensure clear and unambiguous communication of pre-operation preservation of goods quality requirements to sub-suppliers. 3.8.3.13 The supplier’s preservation programme shall clearly and unambiguously document processes and procedures for efficient and effective monitoring of compliance with programme requirements. 3.8.3.14 Compliance monitoring shall commence with ensuring comprehensive consideration of preservation requirements in the engineering instruction and subsequent inclusion of said instruction in procurement documentation and shall be applicable until such time as equipment or materials have been incorporated in an operating or operational system or structure. 3.8.3.15 Compliance evaluation frequency shall anticipate transfer of tactical-level responsibility for management of preservation responsibilities between project functional areas, for example, procurement to logistics, logistics to fabrication, fabrication to logistics, logistics to construction, etc., and shall, in similar fashion, anticipate transfer of support for tactical-level responsibility between various subcontracted service providers. 3.8.3.16 Supplier engineering shall ensure that preservation requirements for scope of work systems, system components, equipment, materials, and other procured goods are clearly and unambiguously documented and that preservation requirements are efficiently and effectively communicated to project procurement, logistics, construction management, quality, security, and other project functional areas, as required, for efficient and effective implementation of preservation requirements. This shall take the form of a preservation programme applicable to all systems, system components, equipment, materials, customer- supplied materials, and other goods procured or managed under the scope of work. 3.8.3.17 The supplier’s preservation management programme shall clearly and unambiguously address temporary, long-term, and in-transit preservation requirements, including, but not limited to:  requirements for protection against, or insulation from, atmospheric conditions, sunlight, temperature, soil, dust, humidity, salt spray, corrosive atmospheres, or other physical environment conditions;  detailed procedures for application, use, monitoring, and maintenance of coatings, coverings, fasteners, lines, and other components for internal and external weather proofing;  requirements for electrical grounding or isolation;  requirements for internal or external environment creation, for example, inert gas charging, heating, cooling, etc., inclusive of gas storage, electric power supply, etc.;  detailed procedures for initial set-up, charging, activation, and maintenance of internal atmosphere generation, regeneration, monitoring, and relieving systems, for example, inert gas management systems;  requirements for protection against, or insulation from, vibration or long-period cyclical motion in transit, for example, wave-generated movement during sea transport;  internal and external structural integrity protection, for example, internal and external bracing, padding, framing, chocking, etc.; CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page:  support structure requirements, for example, stools, pads, or other devices, substrates, or support required to ensure in-storage and in-transit stability of systems, system components, equipment, and material, or other discrete units or items;  provision for physical separation and/or barriers to prevent airborne or direct transmittal of contaminants between work areas or between work areas and storage areas, for example, prevention of carbon steel grinding or cutting debris impact on stainless steel elements, airborne drift of blast aggregate into vessels or machinery, etc.;  provision for, and final disposition of, temporary and longer-term storage or transit required supports and related binding devices, for example, stools, stands, sea fasteners, platforms, chocks, spacers, cabling, etc.;  provision of requirements for temporary work platforms or other support structures required to ensure provision of preservation services, for example, provision of a self-elevating work platform for periodic access to elevated fittings, gauges, man- ways, etc.;  requirements for protection against, or insulation from, contact with other objects, for example, padding or other protection for external tubing, fittings, or other impact- sensitive structures or components;  clear physical delineation of temporary and longer-term storage areas supplemented by hard and soft barriers, as required, to maintain a protective perimeter;  documented agreements with storage facility and transportation provider management regarding security management, including, but not limited to, facility access and egress control and control of access to project goods and materials within facility boundaries or aboard vehicles or vessels; and  detailed procedures for inspection and testing to verify performance of preservation procedures and to provide for timely notice and corrective action to maintain preservation status. 3.8.3.18 The supplier’s preservation management programme scope shall encompass management of preservation requirements, from initial transfer of ownership or management responsibility to project scope of responsibility, through any period of temporary or longer- term storage and through any period of transit, including transit for final delivery at point of active use or installation. 3.8.3.19 The supplier’s preservation management programme shall clearly and unambiguously address processes and procedures to ensure that storage and control of materials are accomplished in accordance with manufacturer recommendations, specifications, and project-specific requirements. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.3.20 The supplier’s preservation management programme shall incorporate special precautions to address preservation and control of valves, electrical motors and components, mechanical and rotating equipment, piping and fittings, instrumentation, flange faces, gaskets, coatings, insulation, and other materials. Special precautions include, but are not limited to, supplier-specified maintenance procedures related to engines, electric motors, pumps, compressors, etc., such as periodic shaft rotation, engine turnover, lubrication, etc. 3.8.3.21 The supplier shall ensure that clear and unambiguous requirements for preservation of the system, system components, equipment, materials, and other procured goods are clearly and unambiguously documented in purchase orders, work authorisations, and other communications between the supplier and sub-suppliers. 3.8.3.22 Where sub-supplier expertise is utilised in determination of the preservation protocol, supplier procurement processes shall ensure clear and unambiguous documentation of sub- supplier input into preservation management programme requirements. 3.8.3.23 Supplier procurement shall ensure that preservation requirements for scope of work systems, system components, equipment, materials, and other procured goods are clearly and unambiguously documented and that preservation requirements are efficiently and effectively communicated to project logistics, construction management, quality, security, and other project functional areas, as required, for efficient and effective implementation of preservation requirements. 3.8.3.24 The supplier shall ensure comprehensive, clear, and unambiguous designation of sub- supplier responsibility for execution of all preservation management programme elements, including, but not limited to, all systems, processes, procedures, methods, ready access to records, and provision of equipment, tools, or services essential to efficient and effective execution of the preservation management programme. 3.8.3.25 The supplier shall ensure that preservation management programme responsibilities are clearly and unambiguously defined within the project team and efficiently and effectively implemented at all project scope of work locations. Inclusion of supplier and sub-supplier scope of work in the development and implementation of a preservation management programme shall be considered essential to efficient and effective preservation management programme execution. 3.8.3.26 The supplier shall ensure clear and unambiguous designation of project team responsibility for oversight and management of preservation management programme elements during every stage of project development. 3.8.3.27 The supplier shall ensure that Eskom has free and unrestricted access to all preservation records for inspection and audit. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.4 Quality Audits Related Conditions 3.8.4.1 The supplier shall maintain an accurate quality audit and related quality performance review schedule and shall incorporate the current schedule as an attachment to the supplier CQP. 3.8.4.2 The supplier’s quality audit and related quality performance review schedule development process shall be designed to incorporate consideration of information generated by previously conducted audits and reviews, by input from project risk management evaluations (risk register), or from Eskom or sub-supplier subject matter expertise. 3.8.4.3 Eskom reserves the right to oversee supplier audit programmes by participating in selected audits as an observer and by assessing the supplier during key work stages. Eskom will coordinate with the supplier to develop an oversight schedule aligned with the supplier’s audit schedule. 3.8.4.4 Eskom will have the right to obtain access to any audit reports of audits performed by the supplier reflected in the audit programme. 3.8.4.5 Eskom reserves the right to conduct independent quality audits, scheduled and unscheduled, during all phases of the contract. The supplier shall provide all resources to support these activities. 3.8.4.6 Eskom shall be given access at all reasonable times before, during, and after manufacture and before delivery, construction, erection, and commissioning to measure, test, and inspect the products and workmanship, as necessary, at the supplier’s premises and at Eskom sites. 3.8.4.7 The supplier shall obtain access for Eskom to measure, test, witness tests, and inspect products that are being manufactured by any sub-supplier. This includes surveillances. 3.8.4.8 The assessments and audits shall be carried out on all new suppliers and their sub- suppliers. 3.8.4.9 Eskom shall have the right to participate in, or request that, a technical investigation be launched and conducted at the supplier’s and sub-suppliers’ premises or other sites when risk to Eskom products or service deliverables is identified. 3.8.4.10 Qualification requirements for supplier and sub-supplier personnel engaged in conducting quality audits and related quality performance reviews shall be defined in the supplier CQP and shall be in compliance with the Project Quality Personnel Qualification Specification. 3.8.5 Management of Nonconformities and Nonconforming Outputs Identified by Eskom 3.8.5.1 Nonconformity reports raised by Eskom and issued against the supplier shall be investigated by the supplier as a matter of urgency in order to determine the root cause, corrective action measures, as required, with implementation time frames. 3.8.5.2 A formal response shall be prepared in respect of the defined criteria and submitted to Eskom for its review, evaluation, and acceptance, within a maximum of 14 calendar days from the date of issue of the nonconformity and should be aligned with the site requirements/procedure. 3.8.5.3 Eskom may, at its discretion, request a response sooner and, in any case, before the supplier proceeding with any pending/further intervention or corrective action, as may be required by Eskom. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.5.4 Should Eskom or its inspection authority/agency identify any nonconforming products during the conduct of its audits/surveillances/inspections, the supplier shall be deemed to be in breach of contract and shall be held liable for any repair, rework, and/or associated replacement costs. The supplier may, in such instances, also be held liable for the full costs associated with the conducting of follow-up audits/surveillances/inspections. 3.8.5.5 The nature, magnitude, and/or frequency of nonconformity and inspection defect/rejection reports raised by Eskom or its appointed inspection authority/agency shall form the basis of any action to rescind/withdraw the supplier’s qualification status. 3.8.5.6 Nonconforming outputs identified by Eskom shall be documented via a NC Report and issued to the suppliers via the contract communication protocol. The suppliers shall investigate the matter and respond in writing to Eskom of disposition within the stated contractual conditions. Note: The dates for the disposition should align to contractual conditions. 3.8.5.7 Eskom shall identify repeat deficiencies as systematic failures of the supplier’s QMS and shall notify the supplier of the trends. Eskom can initiate an internal audit to highlight the system failures. The supplier with raise a Corrective Action Report and undertake Root Cause Analysis. In such cases, QMS rectification and/ or update measures shall be taken immediately. 3.8.5.8 Should the Supplier fail to respond and rectify nonconforming products within stipulated contractual conditions. The Project Manager should apply contractual remedies in accordance with Fidic/ NEC contract. 3.8.5.9 Repeated Nonconformities; if there are any identified repeat nonconformities from the same supplier within a period of 6 months or less. This must then be escalated to the management review committees of the BU/ OU/ Cluster/ or Divisions for adjudication. If not resolved, then the matter must be escalated to the supplier review committee for recommendation. 3.8.6 Special Processes The following requirements shall be applicable as well as additional requirements as specified in the scope of work for the provision of the following special process services: 3.8.6.1 The supplier shall ensure that all processes which require that procedures be pre-qualified or work methods and operators tested and qualified are controlled and all steps followed before the work can commence. 3.8.6.2 This typically covers such activities as welding, non-destructive testing, special fabrication techniques, coating, painting, etc. 3.8.6.3 All special processes (procedures and processes) shall be submitted for review and acceptance by Eskom, accredited or certified agency. No work shall commence until these are accepted. 3.8.6.4 Where applicable, a relevant Management System for the special process shall be certified or approved by an accredited body and proof of certification shall be submitted to Eskom for review. An example for this will be the Welding Management System based on ISO 3834. 3.8.6.5 Where samples are required for acceptance, these shall be submitted to Eskom for review and acceptance. CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 3.8.6.6 The supplier shall ensure that all operators are suitably qualified for these processes in accordance with the procedures, processes and/ or applicable standards/ codes. 3.8.6.7 The records of qualification of procedures, processes and operators shall be maintained by the supplier in accordance with the applicable procedure or code and these made available to Eskom at all times. 4. Acceptance This document has been seen and accepted by: Name Designation Kerseri Pather General Manager: Risk and Sustainability Lenock Meyer Acting Senior Manager: Quality Management Pamela Dondashe Middle Manager: Quality Assurance Mandla Mkhwanazi Middle Manager: SHEQ Procurement and Supply Chain Management Suzette Manthe Senior Advisor: Quality Performance and Planning Lorna Ndlela Middle Manager: Eskom Document and Records Management 5. Revisions Date Rev. Compiler Remarks October 2021 3 SA Sambo Specification was due for revision and in addition, to align the requirements with the latest Eskom business processes and systems. October 2018 2 SA Sambo Specification reviewed to be aligned with the requirements of ISO 9001:2015 March 2016 1 SA Sambo Specification was due for revision and also to repackage the requirements and tender returnable documents into four categories. December 2011 0 A Hunter New document 6. Development Team The following people were involved in the development of this document:  Andrew Else  Bongi Tshabalala  Feziwe Mogamisi  Lesego Garegae  Patrick Thwane  Xolani Zuma CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30. Supplier Quality Management: Specification Unique Identifier: 240-105658000 Revision: 3 Page: 7. Acknowledgements Eskom Operational Quality Forum Members CONTROLLED DISCLOSURE When downloaded from the document management system, this document is uncontrolled and the responsibility rests with the user to ensure it is in line with the authorized version on the system. No part of this document may be reproduced without the expressed consent of the copyright holder, Eskom Holdings SOC Ltd, Reg No 2002/015527/30.

No specific requirements found B-BBEE Minimum Level: 1