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CSIR RFP No:.707/18/03/2016 Page 1 of 18

Request for Proposals (RFP)

The provision of professional property management

advisory, lease management and tenant relationship

management services to the CSIR

RFP No.: 3025/18/03/2016

Date of Issue Friday, 04 March 2016

Closing Date Friday, 18 March 2016

Place Tender box, CSIR Main Reception, Gate 3 ( North Gate) Enquiries Strategic Procurement Unit E-mail: tender@csir.co.za CSIR business hours 08h00 – 16h30

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CSIR RFP No:.707/18/03/2016 Page 2 of 18 TABLE OF CONTENTS

SECTION A – TECHNICAL INFORMATION 3

1 INTRODUCTION 3

2 BACKGROUND 3

3 INVITATION FOR PROPOSAL 3

4 PROPOSAL SPECIFICATION 3

5 FUNCTIONAL EVALUATION CRITERIA 8

6 ELIMINATION CRITERIA 9

7 VENUE FOR PROPOSAL SUBMISSION 11

8 TENDER PROGRAMME 11

9 SUBMISSION OF PROPOSALS 11

10 DEADLINE FOR SUBMISSION 12

11 AWARDING OF TENDERS 12

12 EVALUATION PROCESS 12

13 PRICING PROPOSAL 12

14 VALIDITY PERIOD OF PROPOSAL 13

15 APPOINTMENT OF SERVICE PROVIDER 13

16 ENQUIRIES AND CONTACT WITH THE CSIR 13

17 MEDIUM OF COMMUNICATION 14

18 COST OF PROPOSAL 14

19 CORRECTNESS OF RESPONSES 14

20 VERIFICATION OF DOCUMENTS 14

21 SUB-CONTRACTING 15

22 ENGAGEMENT OF CONSULTANTS 15

23 TRAVEL EXPENSES 15

24 ADDITIONAL TERMS AND CONDITIONS 16

25 CSIR RESERVES THE RIGHT TO 16

26 DISCLAIMER 17

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CSIR RFP No:.707/18/03/2016 Page 3 of 18 SECTION A – TECHNICAL INFORMATION

1 INTRODUCTION

The Council for Scientific and Industrial Research (CSIR) is one of the leading scientific research and technology development organisations in Africa. In partnership with national and international research and technology institutions, CSIR undertakes directed and multidisciplinary research and technology innovation that contributes to the improvement of the quality of life of South Africans. The CSIR’s main site is in Pretoria while it is represented in other provinces of South Africa through regional offices.

2 BACKGROUND

The CSIR operates and owns real estate portfolio encompassing 52 buildings with a gross area of more than 266 000m 2, which is a strategic asset that represents a significant proportion of the organisation’s investment and expense.

A significant portion of the CSIR property portfolio is occupied by CSIR Business Units from which research and development activities are undertaken from this portfolio to meet the CSIR strategic objectives. A large portion of the CSIR property portfolio is also leased to strategic partners of the CSIR to stimulate collaboration between the CSIR and organizations with similar interests in order for the CSIR to deliver on its strategic objectives, particularly to increase human capital, and stimulate job creation etc. This portion of the real estate generates approximately R38 million in revenue from what would otherwise be idle assets/surplus portfolio with the objective of achieving the best financial returns for the CSIR which is re-invested in the real estate to fund the maintenance and renovation projects aimed to improve the functionality and value of the entire CSIR portfolio.

3 INVITATION FOR PROPOSAL

Proposals are hereby invited from independent contractors or professional property management firms to supply property management advisory services, lease management and tenant relationship management services to the CSIR as specified in the scope of work. 4 PROPOSAL SPECIFICATION

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CSIR RFP No:.707/18/03/2016 Page 4 of 18 All proposals are to be submitted in a format specified in this enquiry. However, tenderers are welcome to submit additional / alternative proposals over and above the originally specified format.

4.1 SCOPE OF SERVICES

4.1.1 Role and structure of Property Management

As the custodian of CSIR property portfolio, the Property Management Department leads an integrated approach to strategic planning and design excellence in creating model CSIR campuses consistent with the CSIR’s status as one of the leading research institutions in the world, and in support of the CSIR’s mandate to provide multidisciplinary research and development.

The long-range objectives of the property management department are to:

 Efficiently and effectively provide world-class research facilities and infrastructure;

 Optimise space utilisation and efficiency across the CSIR; and

 Utilise best practice in the management of the CSIR’s real property to support the strategic objectives of the CSIR.

Property Management is responsible for the strategic planning and day-to-day operations management of both the real estate leased to third parties and the operational estate occupied by CSIR Units, and is responsible for a wide range of CSIR services divided into the following key functional areas:

 Space Planning and Management services – strategic accommodations planning and management;

 Estate Management and Services which provides outward facing support services ranging from Cleaning, Hygiene, Gardening and Grounds, Pest Control, Parking, for all CSIR properties.

 Real Estate services which includes buying, selling and leasing of property including leasing off campus space on behalf of Units and leasing CSIR owned space to third parties.

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CSIR RFP No:.707/18/03/2016 Page 5 of 18 In fulfilment of our role as the Landlord, we work hand in hand with other internal support service departments to ensure that the CSIR operates and maintains facilities that are adequate to serve the needs of the CSIR R&D programs, support services and other mission-related activities including:

• Technical Services and Maintenance Services Department responsible for the maintenance of the CSIR properties, utilities management and provides guidance on technical services to the property management department;

• Operations management which manages the Reception and Helpdesk / Callcentre

• Project Management Department responsible for the management of construction and interior refurbishment projects from design to completion including all Capital Projects, Minor Building Works, Renewal and Replacement Projects for all CSIR properties;

• Safety, Health, Environmental, and Quality department responsible for advise on all matters relating to Health and Safety, Energy, Travel Management, Waste Management and Bio-diversity;

• ICT Services responsible for the provision of ICT infrastructure

4.1.2 Extent

The selected property management service provider / independent contractor shall provide advisory and management services for the property portfolio of the CSIR leased to third parties in all CSIR campuses. This comprises office accommodation, research and development facilities, and retail currently leased to approximately 110 private tenants occupying over 50 000m 2 and generating over R38million in revenue.

4.1.3 Objectives

 The overall objectives of the required service are:

 To develop and implement a targeted leasing strategy aligned to the overall CSIR strategic objectives and the Real Estate Strategy and goals;

 Ensure effective utilisation of the surplus real property portfolio/idle assets to enable the organisation to achieve its mandate and strategic objectives;

 To utilise the CSIR’s vacant and otherwise idle assets productively by maximising revenue on the portfolios leased to third parties;

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CSIR RFP No:.707/18/03/2016 Page 6 of 18

 To leverage the CSIR’s surplus property portfolio to increase human capital development, foster collaboration, empower emerging micro-enterprises and to create employment in the Science, Engineering, and Technology space;

• To ensure a professional, effective and efficient approach to the management of the real estate activities in line with industry practice to ensure return on investment of CSIR real estate and efficient cost minimisation .

4.1.4 Expectations and scope of services

The Lease Management role is comprised of the following essential functions:

 Formalizing the landlord/tenant relationship in a proper lease agreement;

 Managing and updating lease data, tracking lease critical dates, options etc. (quantitative and qualitative);

 Monitoring and enforcing landlord/tenant performance against lease commitments;

 Determining budgeting and forecasting revenues, occupancy costs and financial obligations, as well as tracking and making timely payment/receipt of rent; and

 Managing the risk associating with lease activities on behalf of the CSIR.

Reporting into the CSIR Manager for Properties and Projects Portfolio, the contractor would have the following accountabilities:

4.1.4.1 Lease Administration

 Lease Audit

 Loading of leases on Archibus System

 Rent collection – ensure prompt payment of rental and all monies payable to Property Management by all tenants in the premises. The Tenants will pay the rental directly into CSIR account;

 Lease documentation - manages risk associated with leasing and ensure proper administration, systems and legislative requirements.

 Arears management - notify the Property Management department to institute all necessary legal actions or proceedings for the collection of rent or other income from the premises;

 For vacant spaces, prior to commencement of leasing activities:

o Inspecting the premises and reporting any deficiencies to the Property Management Department;

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CSIR RFP No:.707/18/03/2016 Page 7 of 18

o Preparing a comparative market analysis of similar spaces, market conditions, types of tenants to target, etc

o Design and implementation of tenant mix and maximisation of rental income strategies across the portfolio;

o Tenant engineering to create additional capital value and rental growth at rent review or lease renewal and management of vacancy/void rates;

o Preparing a complete marketing plan, schedule and sample marketing materials for approval by Property Management

o Support Property Management to ensure that the leasing strategy and tenant mix aligns and supports the CSIR strategic objectives;

o Formulates and implements a strategic leasing framework and budgeting process for the portfolios and ensures consistency of leasing processes and documentation across all portfolios under management.

 Vetting and sourcing of new tenants –

o Representing the CSIR as its agent and Landlord’s Representative in locating suitable tenants, and negotiating lease rates and terms

o Utilize best efforts to cause the premises to be rented in line with tenant strategy and kept desirable to tenants.

 Lease renewals and negotiations at appropriate times including the advertisement of the premises or portions thereof for rent.

 Operational Budgeting and forecasting - prepare and submit to Property Management a proposed operating and capital budget for the promotion, leasing, operation, repair and maintenance of the premises;

 Incoming and outgoing inspections 4.1.4.2 Tenant Relationship Management

 Handle promptly all complaints and requests for service from tenants;

 Log Calls to the Facilities Management Help Desk/Callcentre for services required in tenant occupied areas;

 Liaise and coordinates with internal support departments or any service providers tasked to perform soft services (cleaning, garden, pest control etc.) and tenants to ensure leased properties are kept in clean and good condition and to cause to be

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CSIR RFP No:.707/18/03/2016 Page 8 of 18 made all repairs, alterations, replacements, and installations, and necessary day to day business affairs for the proper operation of the premises;

 Regular inspections of leased premises to identify and notify Property Management of any repair and replacement required to keep the leased premises in a good condition;

 Notify Property Management promptly of any personal injury or property damage occurring to or claimed by any a tenant or third party with respect to the premises; and

 To ensure compliance of tenants with all rules, regulations, and statutory requirements 4.1.4.3 Reporting

 Prepare and submit to Property Management monthly detailed reports relating to the management and operation of the premises for the preceding calendar month.

 Ensure consistent processes and procedures applied across the lease portfolio

5 FUNCTIONAL EVALUATION CRITERIA

5.1 The evaluation of the functional / technical detail of the proposal will be based on the following criteria:

Evaluation Criteria Documents to be submitted

Weighted score Experience of the

property management firm/independent contractor in providing property advisory services, lease

administration and tenant management services.

Bidder must provide a list of no less than three (3) leasing and management assignments performed in the past five (5) years by current key members of the firm. Include a brief description of each contract, the time period services were

performed, contact name, address and phone number of the representative of the client/property owner having knowledge of the firm’s work, and the contract value for the services. (Annexure 1)

30

Experience of the staff to be assigned to the contract.

• Organogram and profiles of staff to be assigned to the contract.

• List of referrals of properties managed

30

References and customer satisfaction rating on the service provided in a similar environment.

• List of current and previous commercial clients • A minimum of three Satisfaction letters and

any performance rating scores from previous or current clients

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CSIR RFP No:.707/18/03/2016 Page 9 of 18 Executive summary

providing the

methodology, procedures and processes to provide the scope of services

• Briefly describe the firm’s procedures and processes for (a) developing marketing materials, (b) advertising properties, and (c) leasing and managing properties, particularly with respect to timely, responsive, and clear communications and collaborating with clients and tenants to resolve conflicts.

• Describe any specialized equipment and services provided by your team.

• Discuss technology and software utilized by your firm and reporting capabilities? Include copies of sample monthly correspondence and reports to the landlord. Indicate if the firm or current staff member has worked with or has knowledge of Archibus

25

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

5.2 Proposals with functionality / technical points of less than the pre-determined minimum overall percentage of 70% and less than 70% on any of the individual criteria will be eliminated from further evaluation.

5.3 Refer to Annexure A for the scoring sheet that will be used to evaluate functionality.

6 ELIMINATION CRITERIA

Proposals will be eliminated under the following conditions:

 Submission after the deadline;

 Proposals submitted at incorrect location; and

The following mandatory documentation will be required before any negotiations will start with the potential winning bidder or before any contract / order will be awarded:

 Completed CSIR Supplier Registration Form (if not registered with CSIR), alternatively, provide the CSIR Vendor number;

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CSIR RFP No:.707/18/03/2016 Page 10 of 18

 Original valid Tax Clearance Certificate or Letter of Good standing issued by SARS (RSA suppliers only);

 Original or certified copy of B-BBEE certificate – where B-BBEE credentials were used as part of evaluation; (RSA suppliers only);

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CSIR RFP No:.707/18/03/2016 Page 11 of 18 SECTION B – TERMS AND CONDITIONS

7 VENUE FOR PROPOSAL SUBMISSION All proposals must be submitted at:

CSIR GATE 03 - Main Reception Area (in the Tender box) at the following address Council for Scientific and Industrial Research (CSIR)

Meiring Naudé Road Brummeria

Pretoria

8 TENDER PROGRAMME

The tender program, as currently envisaged, incorporates the following key dates:

 Issue of tender documents: 4 March 2016

 Closing / submission Date: 18 March 2016 at 16H30

 Tender evaluation: 21 March 2016

 Estimate appointment date of successful tenderer: 1 April 2016

 Target start date of the contract: 2 May 2016

 Target completion date of contract: 30 May 2017

9 SUBMISSION OF PROPOSALS

9.1 All proposals are to be sealed. No open proposals will be accepted.

9.2 All proposals are to be clearly marked with the RFP number and the name of the tenderer on the outside of the main package. Proposals must consist of two parts, each of which is placed in a separate sealed package clearly marked:

PART 1: Technical Proposal: RFP No.: 3025/18/03/2016.

PART 2: Pricing Proposal, B-BBEE and other Mandatory Documentation: RFP No.: 3025/18/03/2016

9.3 Proposals submitted by companies must be signed by a person or persons duly authorised. 9.4 The CSIR will award the contract to qualified tenderer(s)’ whose proposal is determined to be the most advantageous to the CSIR, taking into consideration the technical (functional) solution, price and B-BBEE.

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CSIR RFP No:.707/18/03/2016 Page 12 of 18 10 DEADLINE FOR SUBMISSION

Proposals shall be submitted at the address mentioned above no later than the closing date of Friday, 18 March 2016 during CSIR’s business hours. The CSIR business hours are

between 08h00 and 16h30.

Where a proposal is not received by the CSIR by the due date and stipulated place, it will be regarded as a late tender. Late tenders will not be considered.

11 AWARDING OF TENDERS

11.1 Awarding of tenders will be published on the National Treasury e-tender portal or the CSIR’s tender website. No regret letters will be sent out.

12 EVALUATION PROCESS 12.1 Evaluation of proposals

All proposals will be evaluated by an evaluation team for functionality, price and B-BBEE. Based on the results of the evaluation process and upon successful negotiations, the CSIR will approve the awarding of the contract to successful tenderers.

A two-phase evaluation process will be followed.

 The first phase includes evaluation of elimination and functionality criteria, local production and content.

 The second phase includes the evaluation of price and B-BBEE status.

Pricing Proposals will only be considered after functionality phase has been adjudicated and accepted. Only proposals that achieved the specified minimum qualification scores for functionality will be evaluated further using the preference points system.

12.2 Preference points system

The 80/20 preference point system will be used where 80 points will be dedicated to price and 20 points to B-BBEE status. If all tenders received are more than R1m, the proposal will be cancelled and re-issued.

13 PRICING PROPOSAL

13.1 Pricing proposal must be cross-referenced to the sections in the Technical Proposal. Any options offered must be clearly labelled. Separate pricing must be provided for each option offered to ensure that pricing comparisons are clear and unambiguous.

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CSIR RFP No:.707/18/03/2016 Page 13 of 18 13.2 Price needs to be provided in South African Rand (excl. VAT), with details on price

elements that are subject to escalation and exchange rate fluctuations clearly indicated.

13.3 Price should include additional cost elements such as freight, insurance until acceptance, duty where applicable.

13.4 Only firm prices* will be accepted during the tender validity period. Non–firm prices** (including prices subject to rates of exchange variations) will not be considered.

*Firm price is the price that is only subject to adjustments in accordance with the actual increase or decrease resulting from the change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax which, in terms of a law or regulation is binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the execution of the contract;

**Non-firm price is all prices other than “firm” prices.

13.5 Payment will be according to the CSIR Payment Terms and Conditions.

14 VALIDITY PERIOD OF PROPOSAL

Each proposal shall be valid for a minimum period of three (3) months calculated from the closing date.

15 APPOINTMENT OF SERVICE PROVIDER

15.1 The contract will be awarded to the tenderer who scores the highest total number of points during the evaluation process, except where the law permits otherwise.

15.2 Appointment as a successful service provider shall be subject to the parties agreeing to mutually acceptable contractual terms and conditions. In the event of the parties failing to reach such agreement CSIR reserves the right to appoint an alternative supplier.

15.3 Awarding of contracts will be announced on the National Treasury website and no regret letters will be sent to unsuccessful bidders.

16 ENQUIRIES AND CONTACT WITH THE CSIR

Any enquiry regarding this RFP shall be submitted in writing to CSIR at tender@csir.co.za with RFP No.: 3025/18/03/2016 - The provision of professional property management

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CSIR RFP No:.707/18/03/2016 Page 14 of 18

advisory, lease management and tenant relationship management services” as the subject.

Any other contact with CSIR personnel involved in this tender is not permitted during the RFP process other than as required through existing service arrangements or as requested by the CSIR as part of the RFP process.

17 MEDIUM OF COMMUNICATION

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

18 COST OF PROPOSAL

Tenderers are expected to fully acquaint themselves with the conditions, requirements and specifications of this RFP before submitting proposals. Each tenderer assumes all risks for resource commitment and expenses, direct or indirect, of proposal preparation and participation throughout the RFP process. The CSIR is not responsible directly or indirectly for any costs incurred by tenderers.

19 CORRECTNESS OF RESPONSES

19.1 The tenderer must confirm satisfaction regarding the correctness and validity of their proposal and that all prices and rates quoted cover all the work/items specified in the RFP. The prices and rates quoted must cover all obligations under any resulting contract.

19.2 The tenderer accepts that any mistakes regarding prices and calculations will be at their own risk.

20 VERIFICATION OF DOCUMENTS

20.1 Tenderers 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.

20.2 One hard copy and one electronic copy (CD or USB memory key) of each proposal must be submitted. In the event of a contradiction between the submitted copies, the hard copy shall take precedence.

20.3 Pricing schedule and B-BBEE credentials should be submitted with the proposal, but as a separate document and no such information should be available in the technical proposal.

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CSIR RFP No:.707/18/03/2016 Page 15 of 18 20.4 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 tender box, by the stipulated due date.

21 SUB-CONTRACTING

21.1 A tenderer will not be awarded points for B-BBEE status level if it is indicated in the tender documents that such a tenderer intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a tenderer qualifies for, unless the intended sub-contractor is an exempted micro enterprise that has the capability and ability to execute the sub-contract.

21.2 A tenderer awarded a contract may not sub-contract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level than the person concerned, unless the contract is sub-contracted to an exempted micro enterprise that has the capability and ability to execute the sub-contract.

22 ENGAGEMENT OF CONSULTANTS

The consultants will only be remunerated at the rates:

22.1 Determined in the "Guideline for fees", issued by the South African Institute of Chartered Accountants (SAICA); or

22.2 Set out in the "Guide on Hourly Fee Rates for Consultants", by the Department of Public Service and Administration (DPSA); or

22.3 Prescribed by the body - regulating the profession of the consultant. 23 TRAVEL EXPENSES

23.1 All travel expenses for the CSIR’s account, be it directly via the CSIR’s travel agent or indirectly via re-imbursements, must be in line with the CSIR’s travel policy. The following will apply:

23.1.1 Only economy class tickets will be used.

23.1.2 A maximum of R1300 per night for accommodation, dinner, breakfast and parking will be allowed.

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CSIR RFP No:.707/18/03/2016 Page 16 of 18 24 ADDITIONAL TERMS AND CONDITIONS

24.1 A tenderer shall not assume that information and/or documents supplied to CSIR, at any time prior to this request, are still available to CSIR, and shall consequently not make any reference to such information document in its response to this request.

24.2 Copies of any affiliations, memberships and/or accreditations that support your submission must be included in the tender.

24.3 In case of proposal from a joint venture, the following must be submitted together with the proposal:

 Joint venture Agreement including split of work signed by both parties;

 The original or certified copy of the B-BBEE certificate of the joint venture;

 The Tax Clearance Certificate of each joint venture member;

 Proof of ownership/shareholder certificates/copies; and

 Company registration certificates.

24.4 An omission to disclose material information, a factual inaccuracy, and/or a misrepresentation of fact may result in the disqualification of a tender, or cancellation of any subsequent contract.

24.5 Failure to comply with any of the terms and conditions as set out in this document will invalidate the Proposal.

25 CSIR RESERVES THE RIGHT TO 25.1 Extend the closing date;

25.2 Verify any information contained in a proposal;

25.3 Request documentary proof regarding any tendering issue; 25.4 Give preference to locally manufactured goods;

25.5 Appoint one or more service providers, separately or jointly (whether or not they submitted a joint proposal);

25.6 Award this RFP as a whole or in part; and

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CSIR RFP No:.707/18/03/2016 Page 17 of 18 26 DISCLAIMER

This RFP is a request for proposals only and not an offer document. Answers to this RFP must not be construed as acceptance of an offer or imply the existence of a contract between the parties. By submission of its proposal, tenderers shall be deemed to have satisfied themselves with and to have accepted all Terms & Conditions of this RFP. The CSIR makes no representation, warranty, assurance, guarantee or endorsements to tenderer concerning the RFP, whether with regard to its accuracy, completeness or otherwise and the CSIR shall have no liability towards the tenderer or any other party in connection therewith.

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CSIR RFP No:.707/18/03/2016 Page 18 of 18 DECLARATION BY TENDERER

Only tenderers who completed the declaration below will be considered for evaluation. RFP No: 3025/18/03/2016

I hereby undertake to render services described in the attached tendering documents to CSIR in accordance with the requirements and task directives / proposal specifications stipulated in RFP No:.3025/18/03/2016 at the price/s quoted. My offer/s remains binding upon me and open for acceptance by the CSIR during the validity period indicated and calculated from the closing date of the proposal.

I confirm that I am satisfied with regards to the correctness and validity of my proposal; that the price(s) and rate(s) quoted cover all the services specified in the proposal documents; that the price(s) and rate(s) cover all my obligations and I accept that any mistakes regarding price(s) and rate(s) and calculations will be at my own risk.

I accept full responsibility for the proper execution and fulfilment of all obligations and conditions devolving on me under this proposal as the principal liable for the due fulfilment of this proposal.

I declare that I have no participation in any collusive practices with any tenderer or any other person regarding this or any other proposal.

I accept that the CSIR may take appropriate actions, deemed necessary, should there be a conflict of interest or if this declaration proves to be false.

I confirm that I am duly authorised to sign this proposal. NAME (PRINT) ……….

CAPACITY ………. SIGNATURE ………. NAME OF FIRM ……….…. DATE ……….

WITNESSES

1 …….………

2 ……….………

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