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SUPPLIERS Factors influencing procurement award decisions

Factors influencing procurement award decisions

RFx / EOI / RFT evaluation

In this phase of the Procure-to-Pay process, Gold Fields' Supply Chain personnel evaluate bid submissions and proposals received from suppliers based on a range of criteria, including (but not limited to):

  • Technical Capability
  • Ability to meet the required quality of work (i.e. standards/specifications)
  • Ability to deliver the required quantity of goods and/or services in the timeframe specified
  • Experience of personnel
  • Ability to add value
  • Health, safety and environmental and community (HSEC)
  • Compliance with HSEC requirements
  • HSEC policies/plans in place
  • Compliance with site access terms
  • Risk assessments undertaken (if required)
  • Sustainability performance
  • Sustainable procurement policies / practices
  • Knowledge of environmental impacts, their prioritisation, and plans to address them
  • Protection of rare, threatened and endangered species (where applicable)
  • Raw materials, chemicals and plastics used in manufacturing / service delivery
  • Carbon emissions, pollutants, energy and water used in manufacturing / service delivery
  • Consideration of single-use items: refuse, reduce, re-use, repair & recycle (5 Rs)
  • Packaging and environmental / social labelling
  • Transport-related impacts
  • Extended warranties
  • Social, ethics, governance and transformation
  • Compliance with applicable anti-corruption laws
  • Compliance with principles of good governance
  • Compliance with (and promotion of) human rights
  • Compliance with host community procurement and/or employment objectives
  • Compliance with supplier diversity objectives (e.g. female-owned businesses, indigenous business, social enterprises, etc.)
  • Commercial
  • Entity's financial standing is sound (i.e. commercial capacity)
  • Overall presentation of the tender submission
  • Conforming offer provided as per the RFx / RFT
  • Proposal represents value for money
  • Mobilisation/demobilisation costs
  • Required insurances are in place and current
  • Past performance
  • Safe work history
  • On-time and on-budget
  • Proposed work programme/lead time
  • Track record in delivering comparable products/scopes of work

Bids are ranked according to a weighted evaluation matrix. Suppliers are then shortlisted for further negotiation.

Negotiating with suppliers

Gold Fields' preference is to engage with suppliers based on our standard terms and conditions. On occasion, suppliers propose alternative terms and conditions, which may introduce unacceptable risk and/or warrant further negotiation. Several rounds of negotiation may be required before the parties reach agreement on appropriate terms and conditions or clause wording.

Gold Fields' Supply Chain personnel typically benchmark submitted rates and pricing against established indices and other forms of market intelligence. If a company's pricing submission is over and above that which Gold Fields believes is reasonable for a given commodity or service, suppliers will be expected to substantiate the price differential; and if necessary, amend their pricing accordingly.

Other factors influencing award decisions

At Gold Fields, we typically preference our contracted suppliers, preferring to manage fewer vendors, minimise risk, and leverage our region-wide buying power; however, should a host community-based business, female-owned business, indigenous business, BEE compliant/HDP controlled entity or social enterprise meet the specified criteria, Gold Fields will consider the award of work to these entities.

Gold Fields encourages its suppliers and contractors to seek out appropriate host community, female-owned, Indigenous, BEE compliant/HDP controlled entities or social enterprises; and where possible, incorporate these businesses as suppliers within their own supply chains.