Enterprise Creation for Development Centre PO Box 395 Pretoria 0001 South Africa Tel: +27 12 841 2911 Fax: +27 12 349 1153 Email: [email protected]

REQUEST FOR PROPOSAL (RFP) Tshivhase Botanical Extracts Project: Phase 2 - Pilot Production RFP Reference: ECD-RFP-2012-138

Proposals are invited for an Engineering Study for the design of a process flow, equipment specifications and facility layout for production of tea extracts at Tshivhase Tea Estate, Limpopo Province. The service must conform to the minimum specifications described in the scope of work of this RFP. The successful Respondent will perform the work within the specification, time schedule and cost stipulated, and will liaise with the designated CSIR Project Manager.

The closing date and time for submissions is 16 March at 12:00 (noon). No late submissions will be considered. The proposal could be submitted by e-mail, fax or original hardcopy to: For Attention:

Marubini Lukhwareni/Bernadette Brown

Physical Address: CSIR Enterprise Creation for Development (ECD) Building 23, CSIR Campus Meiring Naude Road Pretoria, 0001 Fax No:

012-841 4332

e-mail:

[email protected]

1 Introduction and Background The Tshivhase Tea Estate is located near Thohoyandou in the Vhembe District of the Limpopo Province. The entire estate consists of two nearby sub-estates, Mukumbani and Tshivhase. The main activities include the cultivation and production of tea (Camellia sinensis), packaging of bulk and packaged black tea, as well as packaging of rooibos (Aspalathus linearis) tea. A modern black tea processing and packaging facility is located at Mukumbani, and a rooibos tea packaging facility is located at Tshivhase. The estate employs approximately 2 000 people from the surrounding communities. In order to safeguard these jobs and optimally utilise the tea plantation, the CSIR was commissioned to investigate the possibility of producing alternative processed products based on the current tea crop. CSIR proposed the production of extracts from green (GTE), black (BTE) and rooibos (RTE) tea extracts on a pilot scale. The facility will be based in an existing building at Tshivhase. A concept layout/floor plan and production processes were drafted. There is a now a need to commission an engineering study aimed at designing a detailed process flow diagram, preparing detailed equipment specifications and preparing a layout based on these designs for the pilot facility. 2 Scope of work Proposals are requested for an engineering study to be done over a period spanning approximately one month, and finalised in April or May 2012. Issues/activities that should be addressed should include the following: • The main production activities will be the production of Green Tea Extract, Black Tea Extract and Rooibos Tea Extract; • The pilot production facility will be housed in an existing building, in an area measuring about 17 m x 15 m. The height of the roof is between 4.5 and 6 m; • The raw materials capacity is maximum 500 kg fresh tea leaves per day, OR 100 kg dried black tea per day, OR 100 kg dried rooibos tea per day; • The raw material weights at the start of the extraction process are: o 62.5 kg fresh weight/hr (green tea), o 12.5 kg dry weight/hr (rooibos/black tea); • The water use ratios are: o 1:20 or 1:30 weight to water for fresh tea leaves, depending on cost of product vs cost of water removal; o 1:100 weight to water for dry weight; • Production must be a semi continuous process: o Extraction and filter/pressing processes to take place 8 hrs/day, o Concentration/spray drying processes to be continuous on a 24 hr basis; • Air-tight stainless steel holding tanks will be needed for storage of approximately 15 000 L clean hot water, approximately 15 000 L chilled extract and approximately 300 L concentrate; • Water and energy must be recycled between hot clean water tank and chilled concentrate tank in the system;

• • • • • • • •

Equipment must be heat insulated to conserve energy; The option of using a boiler as a heat source instead of electricity must be investigated as part of this study; (possibly a biomass fuelled boiler to burn waste leaf (70kg dry weight / day) and tea factory waste and firewood); An operating temperature of 80-90 degrees Celcius for the Pressing/Filtering stage must be maintained; Extract must be chilled to prevent degradation; Energy optimization must be implemented since energy is the most expensive input cost; The two 10,000 L tanks are to be connected via gas-line to maintain a nitrogen gas blanket; The expected output product (soluble solids) should be 1/3 (one third) of the dry weight of input of raw product OR 35 kg soluble solids per day (30% of dry weight and 7% of fresh weight); The main processes for production of the extracts are listed in Diagram 1. Stages 1-4, as well as Packaging and Labeling are common to the production of all three types of extract to be produced.

Diagram 1: Conceptual drawing of envisaged production processes

Taking into consideration the technical requirements and information provided above, the detailed scope of work will include:

1. Preparation of a detailed Process Flow diagram (use Diagram 2 - Conceptual Process Flow - as guideline.

2. Preparation of detailed Equipment Specifications for: a. Jacketed boiling vessel OR Counter current screw press for Stage 1 operations; b. Filter press OR self cleaning centrifuge for Stage 2 operations; c. Vacuum assisted Thin Film Evaporator OR Reverse Osmosis System for Stage 3 operations; a secondary concentration step may be necessary to produce concentrate of 40-45 % soluble solids for spray drier; d. Spray Drier for Stage 4 operations; e. Stainless steel holding tanks as specified above; f. Stainless steel connecting pipes, and pumps.

3. Preparation of a detailed layout/floor plan drawing for the whole pilot production facility to fit into the existing building as specified above, based on the final process flow diagram and equipment specifications described in this scope of work (See Diagram 3 – concept layout/floor plan) as guideline. Please note: Hot and noisy equipment should be consolidated and isolated from operators, and cold/cool areas should be grouped together. 4. Specification of the water, electricity and other utility capacity needs based on the final equipment specifications as specified above. Should a boiler be the most cost-effective heat source, it must be included in the process flow and layout/floor plan, and specifications in terms of the best fuel type and capacity must be provided. 5. The equipment must be of a “clean in place design” for weekly cleaning with sterilizing fluid and detergent.

storage overnight Aerated 1/h hp motor 10" fan 2 x 2 x 1m Wire mesh false bottom for forced air flow

P-37

Input Leaf P-36

Enzymatic cleaning of RO membranes at intervals

Hot water reservoir 10,000 L 70 C

Reciprocating pump Dose at 1 L/h P-15

P-32

P-29

E-26

Fresh leaf 500 kg/d 50 Kg/h

N2 gas-line headspace Pressure equalizer

P-12

P-17

Enzyme solution

P-23 P-31

P-26

Heat Exchanger

at W

Boiling Vessel 800 L

er

P-21

re

Pump 5 L/h

P-8

e cl cy

P-2

P-10 P-39

E-22

E-21

P-24

E-15 P-9

P-33

gy er En

Feed tank for Spray Dryer 500 L Refrigerated 5C

Spray Dryer 100 L / day

le yc -c re

E-4

P-25

P-4

Hot processes 70 C

Reverse Osmosis Unit 10,000 L / d

Output product Botanical extract

E-25 Centrifuge Self cleaning 900 L / h

P-13 P-6

Waste product Leaf residue 350 kg/d

Pump 400 L/h Chilled Feed tank for RO Unit 10,000 L

P-38

E-23

Cold room 5 C

8 hours / day

Diagram 2: Conceptual process flow

24 hours / day

Diagram 3: Conceptual layout/floor plan for pilot production facility (please note that drawing is not according to scale)

3 Deliverables Deliverables to be provided by the Respondent include the following: • Detailed Process Flow Diagram; • Detailed specifications for equipment to be used in Stages 1-4, holding tanks, connecting pipes and pumps; • Detailed specifications for water, electricity and other utility capacity needs; • Specifications for a boiler, if part of the final design. All work must comply with the relevant industrial specifications as well as local municipal regulations. Please note that the successful Respondent will be required to look after their own safety while on site. 4 Obligations of the CSIR The CSIR will provide the following: • Access to the site (at least one site visit); • Consulting expertise to provide inputs throughout the process; • Technical information obtained during a due diligence study in 2011. • Other relevant information. 5 Timing All Respondents to this RFP must provide a project schedule containing key milestones and completion dates. A project plan should be submitted, showing at least the following milestones: • Site visit; • Commencement of study; • Completion of the work; • Submission of completed diagrams and specifications. 6

Payment terms and conditions • Prices are to be quoted on a fully inclusive basis for services performed. • All prices quoted are to be firm, and valid for a minimum of 60 days. • The CSIR shall not be obliged to accept proposals with the lowest quoted price. • The schedule of payment required by the contractor must be indicated in the proposal.

7 General Respondents are required to supply the following supplementary information and comply with the conditions stipulated: • A description of the methodology and work plan for performing the assignment. • List of services, and facilities to be provided by the CSIR (if any). Respondents who have not undertaken work as suppliers for CSIR during the past 12 months are in addition to above also required to supply the following supplementary information and comply with the conditions stipulated:

• • • •

8

A brief description of the Respondent’s organisation and an outline of recent experience on assignments of a similar nature. Tax Clearance Certificate. BBBEE Certificate (if applicable). Any other information felt to be relevant to the final decision to be made by the Project team.

Information to Respondents • Criteria used for evaluating proposals and selecting the successful Respondent will include, but not be limited to: o Proposal structure and content; o Supplier’s past experience and references; o Delivery schedule; o Price and payment schedule; o BBBEE status of the supplier; • Please note the CSIR’s Terms and Conditions of Requests for Proposal (RFP) attached to this RFP. Each page of the Terms and Conditions needs to be initialled by the Respondent and submitted with the proposal. • Please complete and submit with the proposal the Details of the Respondent attached to this RFP, as well as any additional documentary proof required to substantiate information provided. • Please note that (i) the costs of preparing the proposal and of negotiating the contract, including a visit to the site, are not reimbursable as a direct cost of the assignment; and (ii) the CSIR is not bound to accept any of the proposals submitted in part or in full. • CSIR policy requires that respondents provide professional, objective, and impartial advice and at all times hold the CSIR’s interests paramount, without any consideration for future work, and strictly avoid conflicts with other assignments or their own corporate interests. Respondents shall not be hired for any assignment that would be in conflict with their prior or current obligations to other clients, or that may place them in a position of not being able to carry out the assignment in the best interest of the CSIR. • Respondents may request a clarification of any of the RFP documents up to three days before the proposal submission date. Any request for clarification must be sent in writing by facsimile, or electronic mail to the CSIR address. The CSIR will respond, where relevant, by facsimile, or electronic mail to such requests and will send written copies of the response (including an explanation of the query but without identifying the source of inquiry) to all invited respondents who intend to submit proposals. • At any time before the submission of proposals, the CSIR may, for any reason, whether at its own initiative or in response to a clarification requested by an invited firm, amend the RFP. Any amendment shall be issued in writing through addenda. Addenda shall be sent by mail, cable, telex, facsimile, or electronic mail to all invited respondents and will be binding on them. The CSIR may at its discretion extend the deadline for the submission of proposals. • Respondents are requested to submit a proposal written in English.

CSIR Terms & Conditions of RFP 1.

Proprietary Information

The CSIR (CSIR) considers this Request for Proposal (RFP) and all related information, either written or verbal, which is provided to the Respondent, to be proprietary to CSIR. It shall be kept confidential by the Respondent and its officers, employees, agents and representatives. The Respondent shall not disclose, publish, or advertise this specification or related information in part or as a whole to any third party without the prior written consent of CSIR. This applies regardless of whether the recipient of this RFP responds with a proposal or not.

2.

Enquiries & Responses

All communication and attempts to solicit information of any kind relative to this RFP should be channelled to the Contact Person named in the RFP. All Proposals in response to this RFP and all queries must be sent to the Contact Person at the address provided in the RFP.

3.

Medium of Communication

All the documentation submitted in response to this RFP must be in English.

4.

Verification of Documents

Respondents should check the numbers of the pages to satisfy themselves that none are missing or duplicated. No liability will be accepted by the CSIR in regard to anything arising from the fact that pages are missing or duplicated.

5.

Validity Period

Responses to this RFP (Proposals) received from Respondents will be valid for a period of 60 days counted from the closing date of the RFP.

6.

Submission of RFPs

6.1

Proposals should be submitted in writing or by fax or email before the closing date to the Contact person in 2 above.

6.2

If a courier service company is being used for delivery of the Proposal document, the RFP description must be endorsed on the delivery note/courier packaging to ensure that documents are delivered to the Contact person in 2 above.

6.3

Where a Proposal is not received by the Contact Person in 2 above by the due date, it will be regarded as a late Proposal. Late Proposals will not be considered.

6.4

The Respondent is responsible for all costs incurred in the preparation and submission of the Proposal.

6.5

A copy/s of any affiliations that you are affiliated to must be included in the Proposal.

6.6

Kindly note that the CSIR is entitled to amend any RFP conditions, validity period, specifications, or extend the closing date of RFPs before the closing date. All Respondents to whom the RFP documents have been issued, will be advised in writing of such amendments in good time.

6.7

The CSIR reserves the right not to accept the lowest Proposal or any Proposal in part or in whole. It normally awards the contract to the Respondent who proves to be fully capable of handling the contract and whose Proposal is technically acceptable and/or financially advantageous to the CSIR.

6.8

The CSIR also reserves the right to award this RFP to:a) an organisation that has strong BEE credentials in terms current BEE legislation b) an organisation that is a joint venture with an black empowered company. This will be added to the criteria when evaluating the Proposals.

6.9

The CSIR also reserves the right to award this RFP as a whole or in part without furnishing reasons.

6.10

The CSIR also reserves the right to cancel or withdraw from this RFP as a whole or in part without furnishing reasons.

6.11

The Respondent hereby offers to render all or any of the services described in the attached documents to the CSIR on the terms and conditions and in accordance with the specifications stipulated in this RFP documents (and which shall be taken as part of, and incorporated into, this Proposal at the prices inserted therein).

6.12

This Proposal and its acceptance shall be subject to the terms and conditions contained in this RFP document.

6.13

Proposals submitted by Companies must be signed by a person or persons duly authorised thereto by a resolution of a Board of Directors.

6.14

The Respondent shall prepare for a possible presentation should CSIR require such and the Respondent shall be notified thereof no later than 4 (four) days before the actual presentation date.

6.15

The Respondent hereby agree that the offer herein shall remain binding upon him/her and receptive for acceptance by the CSIR during the validity period indicated and calculated from the closing hour and date of the RFP.

6.16

The Respondent furthermore confirms satisfaction regarding the correctness and validity of this proposal and that all prices and rates quoted cover all the work / items specified in the RFP and that prices and rates quoted cover all obligations under any resulting contract and that the respondent accepts that any mistakes regarding prices and calculations will be at their own risk.

6.17

The Respondent hereby accepts full responsibility for the proper execution and fulfilment of all obligations and conditions devolving on him/her under this agreement as the Principal(s) liable for the due fulfilment of this contract.

6.18

Failure to comply with any of the terms and conditions as set out above will invalidate the Proposal.

6.19

Completion and signature of the “Details Respondent” form are mandatory and confirm acceptance of these Terms and Conditions of RFP.

Note: 1. Tax Clearance Certificate must be attached. In case of a consortium / joint venture, or where sub-contractors are utilised, an original SARS tax certificate for each consortium / joint venture member and/or sub-contractor (individual) have to be submitted as well. 2. The above form is in addition to specific information requested in the RFP document regarding skills, areas of competence, technical expertise, application references and prices, etc. 3. If the respondent already has an interest in any CSIR business a letter declaring that interest must be attached to this form 4. If insurance related information is needed please provide: ○ Name of Insurance broker and/or Insurer ○ Amounts of current limits of indemnity ○ Adherence to Safety standards