The Boardwalk will be spending nearly R500 000 per month on services involving waste management, pest control, cleaning and laundry. "The outsourcing of these services means that we are meeting our empowerment commitment to channel significant business opportunities to local entrepreneurs from historically disadvantaged communities," says The Boardwalk operations manager Mervyn Naidoo.
Companies tendering for the business had to pass strict criteria to meet the high service standards being set by The Boardwalk. "A very intensive and disciplined tendering process was put in place to ensure that the proposals received were of a high standard."
"The applicants' proposals had to demonstrate the skills and experience which would add value to the overall Boardwalk development, so that our management could of course concentrate on its own area of expertise," he says.
There was strong competition for the contracts. More than 165 companies responded to advertisements in local newspapers by registering and collecting The Boardwalk's business opportunity document.
Registered applicants were required to prepare comprehensive proposals indicating how they intended to fulfil The Boardwalk's empowerment objectives with regard to ownership, staffing, procurement of goods and services, and community and social benefits.
The short-listed companies arranged for the inspection of their service provider operations, training and head office facilities.
"The applicants were adjudicated using specific evaluation criteria and weightings," says Mr Naidoo. "Most of the contracts were awarded to local, previously disadvantaged enterprises and joint ventures." They have created an estimated 500 new jobs.
The contracts are valid for a year, with the option of renewal. "Naturally, if we are satisfied with the contractor and they’re still happy working for us, that will be a formality. We’re here to stay, and we want to develop lasting relationships with our suppliers," he says.