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Khai Ma Municipality

UPGRADING OF ONSEEPKANS BULK WATER SUPPLY

TENDER NUMBER: KH 011 / 2018

Name of Tenderer

CIDB GRADING

CSD NUMBER

TENDER AMOUNT

KHAI MA LOCAL MUNICIPALITY

P O Box 108

Pofadder

8890

Tel: (054) 933 1000

Fax: (054) 933 0252

2

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4 Upgrading of Onseepkans Bulk Water Supply | Khai Ma Municipality

Contents

Number Heading

The Tender

Part T1: Tendering procedures

T1.1 Tender Notice and Invitation to Tender (White)

T1.2 Tender Data (Pink)

Part T2: Returnable documents

T2.1 List of Returnable Documents (Yellow)

T2.2 Returnable Schedules (Yellow)

The Contract

Part C1: Agreement and Contract Data

C1.1 Form of Offer and Acceptance (Yellow)

C1.2 Contract Data (Yellow)

C1.4 Adjudicator’s Appointment (Yellow)

Part C2: Pricing data

C2.1 Pricing Instructions (Yellow)

C2.2 Activity Schedule (Yellow)

Part C3: Scope of Work

C3.1 Description of the Works (Blue)

C3.2 Engineering (Blue)

C3.3 Procurement (Blue)

C3.4 Reporting and Time Schedule (Blue)

Part C4: Site Information

C4 Site Information (Green)





Part T1: Tendering Procedures

T1.1 Tender Notice and Invitation to Tender

T1.2 Tender Data


KHAI MA MUNICIPALITY



T1.1: TENDER NOTICE AND INVITATION TO TENDER

Khai Ma Local Municipality invites interested tenderers for the UPGRADING NOF ONSEEPKANS BULK WATER SUPPLY The physical address

for collection of tender documents is Finance Department, Khai Ma Municipality Pofadder

Tender Documents shall be available from Friday 04 January 2019 A receipt for a non-refundable deposit of R 350.00 payable by cheque made out

in favour of Khai Ma Local Municipality is required on collection of the tender documents. E-mailed tender documents can be obtained from the

following address: [email protected] at no cost.

Technical enquiries relating to the tender documents may be addressed to: Mr. Edward Vries, Tel No. 054 933 1005 e-mail: [email protected]

A compulsory site briefing meeting will be held on Tuesday 08 January 2018 at 10h00 at the Municipal Council Chambers in Pofadder

No person/s will be allowed to join the site briefing meeting or to submit a bid if such a person/s are more than fifteen (15) minutes late

The closing time for submission of bids is 12h00 on Friday, 25 January 2019. Bids must be sealed in an envelope clearly marked with the bid

number and title given above, and placed in the tender box located at the Khai Ma Municipal Offices in Pofadder on or before the mentioned

time and latest date.

Telephonic, facsimile, e-mail and late bids will not be accepted. Bids must remain valid for a period of ninety (90) days after the closing date of the

bid. Khai Ma Local Municipality reserves its right to extend the validity period, should you not be willing to hold your bid valid in all respects for

further period as requested, it will lapse on expiry of the current validity period.

Bids will be opened on the same day at the Municipal Council Chamber at 12h00. Late or unmarked bids will not be considered.

Bids may only be submitted on the bid documentation that is issued.

The evaluation of bids will be subjected to functionality scoring. Tenderers must achieve a minimum functionality score of 40 out of 50 points for

functionality in order to be evaluated further. The functionality criteria and weighting are set out in the tender document.

Bids will be evaluated according to the 80/20 preference points system. The bids are subject to the Khai Ma Supply Chain Management Policy,

Preferential Procurement Policy Framework Act, 2000, and the Preferential Procurement Regulations 2011.

The Municipality reserves the right to withdraw any invitation to bid and/or re-advertise or to reject any bid or to accept a part of it. The Municipality

does not bind itself to accept the lowest bid or to award a contract to the Bidder scoring the highest number of points.

Further requirements for sealing, addressing, delivery, opening and assessment of bids are stated in the Tender Document.

Tenderers must have a CIDB contractor designation of 4 CE or higher

OBAKENG ISAACS

MUNICIPAL MANAGER





T1.2: TENDER DATA

The conditions of tender are the Standard Conditions of Tender as contained in Annex F of the CIDB Standard for Uniformity in Construction

Procurement. (See www.cidb.org.za) which are reproduced without amendment or alteration for the convenience of tenderers as an Annex to this

Tender Data.

The Standard Conditions of Tender make several references to the Tender Data for details that apply specifically to this tender. The Tender Data

shall have precedence in the interpretation of any ambiguity or inconsistency between it and the standard conditions of tender. Each item of data

given below is cross-referenced to the clause in the Standard Conditions of Tender to which it mainly applies.

The additional conditions of tender are: Clause

Number Tender Data

F.1.1 The employer is the KHAI MA MUNICIPALITY

F.1.2 The documents listed below will form part of this contract. The tender documents issued by the employer comprise PART 3. The

employer does not supply PART 1 and 2. Tenderers are to acquire their own copies of these documents.

PART 1: The General Conditions of Contract for Construction Works (2015) (Third Edition) published by the South African

Institution of Civil Engineering, is applicable to this contract. Copies of these conditions of contract may be

obtained from the South African Institution of Civil Engineering (Tel: 011-1505-5947).

PART 2: South African Bureau of Standards Standardized Specification for Civil Engineering construction and listed in this

Specification.

PART 3: Tender Documents

VOLUME 1: Tendering Procedures

T1.1 Tender notice and invitation to tender

T1.2 Tender data

VOLUME 2: T2.1 List of returnable documents

T2.2 Returnable schedules

VOLUME 3: Agreements and contract data

C1.1 Form of offer and acceptance

C1.2 Contract data

C1.4 Adjudicator’s appointment

Pricing data

C2.1 Pricing instructions

C2.2 Activity schedules

C3 Scope of work

C4 Site information


F.1.3 The employer’s agent is:

Vakala Khayiyana

MZC Associates & Builders

P. O. Box

Standerton

F.1.4 The arrangements for a compulsory briefing session are as stated in the Tender Notice and Invitation to Tender. (T1.1 refers).

Tenderers must sign the attendance list in the name of the tendering entity. Addenda will be issued to and tenders will be received only

from those tendering entities appearing on the attendance list.

F.1.5 No alternative tender will be considered unless this tender is also submitted free of qualifications and strictly in

accordance with the instructions given in the tender document.

Should a tenderer wish to submit an alternative tender offer, the only criteria permitted for such alternative tender offer is that it demonstrably

satisfies the Employer’s standards and requirements, the details of which may be obtained from the Employer.

Calculations, drawings and all other pertinent technical information and characteristics as well as modified or proposed Pricing Data must be

submitted with the alternative tender offer to enable the Employer to evaluate the efficacy of the alternative and its principal elements, to take a

view on the degree to which the alternative complies with the Employer’s standards and requirements and to evaluate the acceptability of the

pricing proposals. Calculations must be set out in a clear and logical sequence and must clearly reflect all design assumptions. Pricing Data

must reflect all assumptions in the development of the pricing proposal.

Acceptance of an alternative tender offer will mean acceptance in principle of the offer. It will be an obligation of the contract for the tenderer,

in the event that the alternative is accepted, to accept full responsibility and liability that the alternative offer complies in all respects with the

Employer’s standards and requirements.

The modified Pricing Data must include an amount equal to 5% of the amount tendered for the alternative offer to cover the Employer’s costs of

confirming the acceptability of the detailed design before it is constructed.

F.1.6 Parts of each tender offer communicated on paper shall be submitted as an original, plus 1 copy.

F.1.7 The employer’s address for delivery of tender offers and identification details to be shown on each tender

offer package are:

Location of tender box:


Civic Center

21 Nuwe Street

Pofadder

8890

Identification details:

TENDER NO. KH 011 / 2018


THE MUNICIPAL MANAGER


P.O. BOX 108

Pofadder

8890

Closing Date: 25 JANUARY 2019 Time: 1200 HRS


F.1.8 A two-envelope procedure will NOT be followed:

NB: All envelopes should bear the return address of the tenderer

F.1.9 The closing time for submission of tender offers is as stated in the Tender Notice and Invitation to Tender.

F.1.10 Telephonic, telegraphic, telex, facsimile or e-mailed tender offers will not be accepted.

F.1.11 The tender offer validity period is 90 days.

F.1.12 The tenderer is required to submit with his TENDER an original valid Tax Clearance Certificate issued by the South African Revenue Services

or SARS issued PIN.

F.1.15 Tenders will be opened immediately after the closing time (1200 hrs) for tenders at the KHAI MA MUNICIPALITY COUNCIL CHAMBERS.

F.1.16 The procedure for the evaluation of responsive tenders is Method 4.

F.1.17 Adjudication Criteria

(a) Tenderers will be evaluated and adjudicated by the Employer using “The 80/20 preference point system” which awards points on the

basis of preferential procurement regulations.

(b) The Employer will award the Contract to a Tenderer who is qualified to undertake the Works and whose Tender technically and

contractually complies with the specification. Hence tenderers shall be evaluated on functionality as stated in the table below. The

threshold for functionality shall be 65%

(c) Khai Ma Municipality reserves the right to amend or replace the preference point system used in accordance with the municipality’s

tender procedure.

Tender Adjudication: Points for Pricing

The Price portions will be evaluated as follows:

A maximum of 80 points is allocated to Price according to the following formula:

Where:

Np = The number of tender evaluation points awarded for price.

Pm = The price of the lowest responsive tender adjusted to a common financial base for comparative purposes, if applicable.

P = The price of the responsive tender under consideration adjusted to a common financial base for comparative purposes, if

applicable.

Np = 80 x 1 - P – Pm

Pm

Np = 80 x 1 - P – Pm

Pm


[NB: W1=80 and Np =20]

The pricing and the B-BBEE scores shall be calculated using the 80/20

Preference Point System.

The final score shall be calculated using the formula:

TEV = f1 (NFO + NP) + f 2NQ

Where f1 = 0.75 and f 2 =0.25

The table below summarizes the calculated scores and B-BBEE points for

each tenderer obtained from the submitted B-BBEE Certificate. The

preferential points are calculated as follows on the 80/20 system:

B-BBEE Status Level of Contributor

Number of points

(90/10 system)

Number of points

(80/20 system)

1 10 20

2 9 18

The total number of tender evaluation points (TEV) shall be determined in accordance with the following formula for the responsive and qualified tenders.

TEV = f1 (NFO + NP) + f 2NQ

Where f1 and f2 are fractions; f1 equals 1 minus f2; and f2 equals to 0,25

NFO is the number of tender evaluation points awarded for the financial offer, where the score for financial offer is calculated using the following formula

NFO = W1A

Where maximum point for price W1 = 90; (ref: preferential regulations 2011) and

A = {1 – (P – Pm)/ Pm},

[Where P is the comparative price of the Tender under consideration and Pm is the comparative price of lowest qualified Tender]

NP is the number of tender evaluation points awarded for preferences claimed in accordance with the Preferential Procurement Regulations 2011, which is up to maximum of 10 points.

NQ is the number of tender evaluation points awarded for quality, where maximum point for qualification is 100 (W2). The minimum qualifying overall marks for quality to qualify evaluation are 65 points.


3 8 16

4 5 12

5 4 8

6 3 6

7 2 4

8 1 2

Non-compliant contributor 0 0

Tender adjudication: Functionality

Criteria Point

s

Rating Scori

ng

Evaluation Indicators

1. Adequacy of

proposed

work plan

and

methodology

The procedures or innovative

methods the tenderer proposes

to use to achieve the specified

end results, or the special

processes detailed in tender

documents.

The tenderer should be able to

demonstrate its capability to

bring the contract to a

satisfactory

conclusion by describing the

methodology of approach to

accomplish the project’s

required

outcomes.

The information required shall

include the following:

• program of works;

• key performance indicators;

• division of works into

subcontracts;

• innovative procedures to be

used;

• reporting and recording

systems;

20 Very Good 20 The tenderer’s approach to the problem is evaluated on the

understanding and appreciation of the magnitude of the

project especially the emphasis on the use of labour intensive

methods of construction. The bidder should demonstrate

Innovation and efficiency while challenging the status quo

Good 15 The approach is tailored specifically for the project and the

methodology is sufficient to produce good results or deliver

the project as required.

Satisfactory 10 The approach is generic and not tailored to address the

specific project goals and objectives. The approach does not

address all the critical areas of the assignment

Poor 5 The approach is poor and does not address the problem at

hand. It is highly unlikely that the methodology can meet the

objectives of the project

2. Qualification

s &

Competence

of Key Staff

in relation to

scope of

work

The competence of key

management, professional and

technical personnel that the

tenderer

proposes to employ on the

project needs to be assessed

with particular emphasis on the

skills

and experience in technical

areas comparable to the project.

The information required

should include the following

details of the proposed project

team:

20 Very Good 20 The tenderer must demonstrate that key staff are exceptionally

qualified and have the necessary competence to deliver the

objectives of the project. Staff proposed cover the entire scope

of the project

Good 15 The tenderer must demonstrate that key staff are adequately

qualified and competent in application of their skill to meet

the objectives of the project

Satisfactory 10 The tenderer demonstrates that that key staff are reasonably


• names;

• function;

• technical expertise; and

• CV’s to be provided.

Professional Registration to be

demonstrated with relevant

CPD points maintained for

continued registration. CPD

Demonstrated

qualified and competent to in the application of their skill to

meet the objectives of the project

Poor 5 Tenderer did not demonstrate that staff/team are reasonably

qualified and competent to meet the objectives of the project

3. Demonstrate

d Experience

(past

performance)

in

comparable

projects

Previous experience of the

tenderer needs to be assessed in

relation to the fields of

expertise

required to achieve the

intended outcomes of the

project. Recent experience is

more valuable

than historic experience. The

company’s previous experience

in technical areas comparable

to the tendered project, the

scale of past projects and the

role undertaken within those

projects

should be considered.

Information required should

include a list of relevant

projects undertaken and for

each project

provide:

• description and relevance to

the tendered project;

• role of the tenderer;

• project cost; and

• duration of project.

• Traceable references

20 Very Good 20 Tenderer has outstanding experience in comparable projects.

Key Staff has outstanding experience in comparable projects

Good 15 Tenderer has adequate experience in comparable projects. Key

staff has adequate experience in comparable project

Satisfactory 10 Tenderer has reasonable experience in comparable projects.

Key Staff/Team has reasonable experience in comparable

projects

Poor 5 Tenderer has limited experience in comparable projects. Key

Staff/Team has limited experience in comparable projects

4. Quality

Assurance

Systems

which ensure

compliance

with

employers

stated

requirements

Specifies

requirements for a

quality management

system where an

organization needs

to demonstrate its

ability to

consistently provide

services that meets

customer and

applicable statutory

and regulatory

requirements, and

aims to enhance

customer

satisfaction through

the effective

application of the

system, including

processes for

continual

improvement of the

system and the

assurance of

conformity to

customer and

applicable statutory

and regulatory

requirements.

20 Very Good 20 Tenderer has a recognized Quality Assurance System and has

demonstrated that the QA System shall be compatible with the

QA requirements of the Project

Good 15 Tenderer has a QA System that meets Project QA

Requirements

Satisfactory 10 Tenderer has a reasonable Quality Assurance system but has

not demonstrated compatibility with Project QA requirements

Poor 5 Tenderer’s Quality Assurance System does not meet Project

QA Requirements

5. Organization

, Logistics

and support

Resources

The equipment, including

facilities and intellectual

property, which the tenderer

proposes to

use on the project need to be

assessed.

The information required

should include the following:

20 Very Good 20 The Tenderer has convincingly demonstrated that extensive

organizational, logistics and support resources will be

available for the execution of the project

Good 15 The Tenderer convincingly illustrates that sufficient

organizational, logistic, and support resources will be


• specialist equipment;

• labour, by trade skills; and

• facilities.

• Business logistics and

business processes

• Financial viability

available for execution of the project.

Satisfactory 10 The tenderer reasonably illustrates that sufficient

organizational sufficient organizational, logistic, and support

resources will be available for execution of the Project.

Poor 5 The Tenderer fails to illustrate that sufficient organizational

logistic support resources will be available for the project.

F.3.18 The number of paper copies of the signed contract to be provided by the employer is two.


Annex: Standard Conditions of Tender

(As contained in Annexure F of the CIDB Standard for Uniformity in Construction Procurement)

F.1 General

F.1.1 Actions

The employer and each tenderer submitting a tender offer shall comply with these conditions of tender. In their dealings with each other, they shall

discharge their duties and obligations as set out in F.2 and F.3, timeously and with integrity, and behave equitably, honestly and transparently.

F.1.2 Tender Documents

The documents issued by the employer for the purpose of a tender offer are listed in the tender data.

F.1.3 Interpretation

F.1.3.1 The tender data and additional requirements contained in the tender schedules that are included in the returnable documents are deemed to be part of

these conditions of tender.

F.1.3.2 These conditions of tender, the tender data and tender schedules, which are, only required for tender evaluation purposes, shall not form part of any

contract arising from the invitation to tender.

F.1.3.3 For the purposes of these conditions for the calling for expressions of interest, the following definitions apply:

a) Comparative offer means the tenderer’s financial offer after the factors of non-firm prices, all unconditional discounts and any other tendered

parameters that will affect the value of the financial offer have been taken into consideration

b) Corrupt practice means the offering, giving, receiving or soliciting of anything of value to influence the action of the employer or his staff or

agents in the tender process; and

c) Fraudulent practice means the misrepresentation of the facts in order to influence the tender process or the award of a contract arising from a

tender offer to the detriment of the employer, including collusive practices intended to establish prices at artificial levels

d) Quality (functionality) means the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or

implied needs

F.1.4 Communication and employer’s agent

Each communication between the employer and a tenderer shall be in a form that can be read, copied and recorded. Writing shall be in the English

language. The employer shall not take any responsibility for non-receipt of communications from or by a tenderer. The name and contact details of the

employer are stated in the tender data.

F.1.5 The employer’s right to accept or reject any tender offer

F.1.5.1 The employer may accept or reject any variation, deviation, tender offer, or alternative tender offer, and may cancel the tender process and reject all

tender offers at any time before the formation of a contract. The employer shall not accept or incur any liability to a tenderer for such cancellation and

rejection, but will give written reasons for such action upon written request to do so.

F.1.5.2 The employer may not subsequent to the cancellation or abandonment of a tender process or the rejection of all responsive tender offers re-issue a

tender covering substantially the same scope of work within a period of six months unless only one tender was received and such tender was returned

unopened to the tenderer.

F.2 Tenderers obligations

F.2.1 Eligibility

Submit a tender offer only if the tenderer complies with the criteria stated in the tender data and the tenderer, or any of his principals, is not under any

restriction to do business with employer.


F.2.2 Cost of tendering

Accept that the employer will not compensate the tenderer for any costs incurred in the preparation and submission of a tender offer, including the costs of

any testing necessary to demonstrate that aspects of the offer satisfy requirements.

F.2.3 Check documents

Check the tender documents on receipt for completeness and notify the employer of any discrepancy or omission.

F.2.4 Confidentiality and copyright of documents

Treat as confidential all matters arising in connection with the tender. Use and copy the documents issued by the employer only for the purpose of preparing

and submitting a tender offer in response to the invitation.

F.2.5 Reference documents

Obtain, as necessary for submitting a tender offer, copies of the latest versions of standards, specifications, conditions of contract and other publications,

which are not attached but which are incorporated into the tender documents by reference.

F.2.6 Acknowledge addenda

Acknowledge receipt of addenda to the tender documents, which the employer may issue, and if necessary apply for an extension to the closing time stated

in the tender data, in order to take the addenda into account.

F.2.7 Clarification meeting

Attend, where required, a clarification meeting at which tenderers may familiarize themselves with aspects of the proposed work, services or supply and

raise questions. Details of the meeting(s) are stated in the tender data.

F.2.8 Seek clarification

Request clarification of the tender documents, if necessary, by notifying the employer at least five working days before the closing time stated in the tender

data.

F.2.9 Insurance

Be aware that the extent of insurance to be provided by the employer (if any) may not be for the full cover required in terms of the conditions of contract

identified in the contract data. The tenderer is advised to seek qualified advice regarding insurance.

F.2.10 Pricing the tender offer

F.2.10.1 Include in the rates, prices, and the tendered total of the prices (if any) all duties, taxes (except Value Added Tax (VAT)), and other levies payable

by the successful tenderer, such duties, taxed and levies being those applicable 14 days before the closing time stated in the tender data.

F.2.10.2 Show VAT payable by the employer separately as an addition to the tendered total of the prices.

F.2.10.3 Provide rates and prices that are fixed for the duration of the contract and not subject to adjustment except as provided for in the conditions of

contract identified in the contract data.

F.2.10.4 State the rates and prices in Rand unless instructed otherwise in the tender data. The conditions of contract identified in the contract data may

provide for part payment in other currencies.

F2.10.5 Preferencing schedule – Participation of Targeted Labour


1. Condition:

It is a condition of the Contract that the Contractor accept the Schedule and Conditions set out below and complete the annexure as per the Targeted

Construction Procurement Specification SANS 1914 – Part 5.

2. Sanction:

Should the Contractor not meet the Contract Participation Goal, the penalty payable shall be calculated as follows:

P = 0,15 x (D – Do) x NA

(100)

Where D = Tendered Contract Participation Goal percentage.

Do = The Contract Participation Goal as agreed with the Engineer.

NA = Net Amount (Annex A and B).

P = Rand value of penalty payable.

3. Contract Participation Goal

The Contract Participation Goal offered at tender stage for the purpose of the tender preference claim is _____0___%.

4. Weightings for achieving Contract Participation Goal

In Annex A of SANS 1914-5, clause A.2, labour from Khai Ma Local Municipality shall be weighted at 1,5 and labour from elsewhere at 1,0.

F.2.11 Alterations to documents

Not make any alterations or additions to the tender documents, except to comply with instructions issued by the employer, or necessary to correct errors

made by the tenderer. All signatories to the tender offer shall initial all such alterations. Erasures and the use of masking fluid are prohibited.

F.2.12 Alternative tender offers

F.2.12.1 Submit alternative tender offers only if a main tender offer, strictly in accordance with all the requirements of the tender documents, is also

submitted. The alternative tender offer is to be submitted with the main tender offer together with a schedule that compares the requirements of the tender

documents with the alternative requirements the tenderer proposes.

F.2.12.2 Accept that an alternative tender offer may be based only on the criteria stated in the tender data or criteria otherwise acceptable to the employer.

F.2.13 Submitting a tender offer

F.2.13.1 Submit a tender offer to provide the whole of the works, services or supply identified in the contract data and described in the scope of works,

unless stated otherwise in the tender data.

F.2.13.2 Return all returnable documents to the employer after completing them in their entirety, either electronically (if any were issued in electronic

format) or by writing in black ink.

F.2.13.3 Submit the parts of the tender offer communicated on paper as an original plus the number of copies stated in the tender data, with an English

translation of any documentation in a language other than English, and the parts communicated electronically in the same format as they were issued by the

employer.


F.2.13.4 Sign the original and all copies of the tender offer where required in terms of the tender data. The employer will hold all authorized signatories

liable on behalf of the tenderer. Signatories for tenderers proposing to contract as joint ventures shall state which of the signatories is the lead partner

whom the employer shall hold liable for the purpose of the tender offer.

F.2.13.5 Seal the original and each copy of the tender offer as separate packages marking the packages as “ORIGINAL” and “COPY”. Each package shall

state on the outside the employer’s address and identification details stated in the tender data, as well as the tenderer’s name and contact address.

F.2.13.6 Where a two-envelope system is required in terms of the tender data, place and seal the returnable documents listed in the tender data in an

envelope marked “financial proposal” and place the remaining returnable documents in an envelope marked “technical proposal”. Each envelope shall state

on the outside the employer’s address and identification details stated in the tender data, as well as the tenderer’s name and contact address.

F.2.13.7 Seal the original tender offer and copy packages together in an outer package that states on the outside only the employer’s address and

identification details as stated in the tender data.

F.2.13.8 Accept that the employer shall not assume any responsibility for the misplacement of premature opening of the tender offer if the outer package is

not sealed and marked as stated.

F.2.14 Information and data to be completed in all respects

Accept that tender offers, which do not provide all the data or information requested completely and in the form required, may be regarded by the employer

as non-responsive.

F.2.15 Closing time

F.2.15.1 Ensure that the employer receives the tender offer at the address specified in the tender data not later than the closing time stated in the tender data.

Proof of posting shall not be accepted as proof of delivery. The employer shall not accept tender offers submitted by telegraph, telex, facsimile or e-mail,

unless stated otherwise in the tender data.

F.2.15.2 Accept that, if the employer extends the closing time stated in the tender data for any reason, the requirements of these conditions of tender apply

equally to the extended deadline.

F.2.16 Tender offer validity

F.2.16.1 Hold the tender offer(s) valid for acceptance by the employer at any time during the validity period stated in the tender data after the closing time

stated in the tender data.

F.2.16.2 If requested by the employer, consider extending the validity period stated in the tender data for an agreed additional period.

F.2.17 Clarification of tender offer after submission

Provide clarification of a tender offer in response to a request to do so from the employer during the evaluation of tender offers. This may include providing

a breakdown of rates of prices and correction of arithmetical errors by the adjustment of certain rates or item prices (or both). No change in the total of the

prices or substance of the tender offer is sought, offered, or permitted. The total of the prices stated by the tenderer shall be binding upon the tenderer.

Note: Sub-clause F.2.17 does not preclude the negotiation of the final terms of the contract with a preferred tenderer following a competitive selection process,

should the Employer elect to do so.

F.2.18 Provide other material

F.2.18.1 Provide, on request by the employer, any other material that has a bearing on the tender offer, the tenderer’s commercial position (including

notarized joint venture agreements), preferencing arrangements, or samples of materials, considered necessary by the employer for the purpose of a full and

fair risk assessment. Should the tenderer not provide the material, or a satisfactory reason as to why it cannot be provided, by the time for submission stated

in the employer’s request, the employer may regard the tender offer as non-responsive.

F.2.18.2 Dispose of samples of materials provided for evaluation by the employer, where required.

F.2.19 Inspections, tests and analysis

Provide access during working hours to premises for inspections, tests and analysis as provided for in the tender data.

F.2.20 Submit securities, bonds, policies, etc.


If requested, submit for the employer’s acceptance before formation of the contract, all securities, bonds, guarantees, policies and certificates of insurance

required in terms of the conditions of contract identified in the contract data.

F.2.21 Check final draft

Check the final draft of the contract provided by the employer within the time available for the employer to issue the contract.

F.2.22 Return of other tender documents

If so instructed by the employer, return all retained tender documents within 28 days after the expiry of the validity period stated in the tender data.

F.2.23 Certificates

Include in the tender submission or provide the employer with any certificates as stated in the tender data.

F.3 The Employer’s undertakings

F.3.1 Respond to clarification

Respond to a request for clarification received up to five working days prior to the tender closing time stated in the Tender Data and notify all tenderers who

drew procurement documents.

F.3.2 Issue Addenda

If necessary, issue addenda that may amend or amplify the tender documents to each tenderer during the period from the date of the Tender Notice until

seven days before the tender closing time stated in the Tender Data. If, as a result a tenderer applies for an extension to the closing time stated in the Tender

Data, the Employer may grant such extension and, will then notify it to all tenderers who drew documents.

F.3.3 Return late tender offers

Return tender offers received after the closing time stated in the Tender Data, unopened, (unless it is necessary to open a tender submission to obtain a

forwarding address), to the tenderer concerned.

F.3.4 Opening of tender submissions

F.3.4.1 Unless the two-envelope system is to be followed, open valid tender submissions in the presence of tenderers’ agents who choose to attend at the

time and place stated in the tender data. Tender submissions for which acceptable reasons for withdrawal have been submitted will not be opened.

F.3.4.2 Announce at the opening held immediately after the opening of tender submissions, at a venue indicated in the tender data, the name of each

tenderer whose tender offer is opened, the total of his prices, preferences claimed and time for completion, if any, for the main tender offer only.

F.3.4.3 Make available the record outlined in F.3.4.2 to all interested persons upon request.

F.3.5

Two-envelope system

F.3.5.1 Where stated in the tender data that a two-envelope system is to be followed, open only the technical proposal of valid tenders in the presence of

tenderers’ agents who choose to attend at the time and place stated in the tender data and announce the name of each tenderer whose technical proposal is

opened.

F.3.5.2 Evaluate the quality of the technical proposals offered by tenderers, then advise tenderers who remain in contention for the award of the contract of

the time and place when the financial proposals will be opened. Open only the financial proposals of tenderers, who score in the quality evaluation above

the minimum number of points for quality stated in the tender data, and announce the score obtained for the technical proposals and the total price and any

preferences claimed. Return unopened financial proposals to tenderers whose technical proposals failed to achieve the minimum number of points for

quality.

F.3.6 Non-disclosure

Not disclose to tenderers, or to any other person not officially concerned with such processes, information relating to the evaluation and comparison of

tender offers, the final evaluation price and recommendations for the award of a contract, until after the award of the contract to the successful tenderer.

F.3.7 Grounds for rejection and disqualification


Determine whether there has been any effort by a tenderer to influence the processing of tender offers and instantly disqualify a tenderer (and his tender

offer) if it is established that he engaged in corrupt or fraudulent practices.

F.3.8 Test for responsiveness

Determine, on opening and before detailed evaluation, whether each tender offer properly received:

a) meets the requirements of these Conditions of Tender,

b) has been properly and fully completed and signed, and

c) is responsive to the other requirements of the tender documents.

A responsive tender is one that conforms to all the terms, conditions, and specifications of the tender documents without material deviation or qualification.

A material deviation or qualification is one which, in the Employer’s opinion, would:

• detrimentally affect the scope, quality, or performance of the works, services or supply identified in the Scope of Work,

• change the Employer’s or the tenderer’s risks and responsibilities under the contract, or

• affect the competitive position of other tenderers presenting responsive tenders, if it were to be rectified.

Reject a non-responsive tender offer, and not allow it to be subsequently made responsive by correction or withdrawal of the non-conforming deviation or

reservation.

F.3.9 Arithmetical errors

Check responsive tender offers for arithmetical errors, correcting them in the following manner:

• Where there is a discrepancy between the amounts in figures and in works, the amount in words shall govern.

• If a bills of quantities (or schedule of rates) apply and there is an error in the line item totals resulting from the product of the unit rate and the

quantity, the line item total shall govern and the rate shall be corrected. Where there is an obviously gross misplacement of the decimal

point in the unit rate, the line item total as quoted shall govern, and the unit rate will be corrected.

• Where there is an error in the total of the prices either as a result of other corrections required by this checking process or in the tenderer’s

addition of prices, the total of the prices shall govern and the tenderer will be asked to revise selected item prices (and their rates if a bills

of quantities applies) to achieve the tendered total of the prices.

Consider the rejection of a tender offer if the tenderer does not correct or accept the correction of his arithmetical errors in the manner described above.

F.3.10 Clarification of a tender offer

Obtain clarification from a tenderer on any matter that could give rise to ambiguity in a contract arising from the tender offer.

F.3.11 Evaluation of tender offers

F.3.11.1 General

Appoint an evaluation panel of not less than three persons. Reduce each responsive tender offer to a comparative offer and evaluate it using the tender

evaluation method that is indicated in the Tender Data and described below:

Method 1:

Financial offer

1. Rank tender offers from the most favorable to the least favorable comparative offer.

2. Recommend highest ranked tenderer for the award of the contract, unless there are compelling and justifiable reasons not

to do so.

Method 2:

Financial offer and

preferences

1. Score tender evaluation points for financial offer.

2. Confirm that tenderers are eligible for the preferences claimed and if so, score tender evaluation points for preferencing.

3. Calculate total tender evaluation points.

4. Rank tender offers from the highest number of tender evaluation points to the lowest.

5. Recommend tenderer with the highest number of tender evaluation points for the award of the contract, unless there are

compelling and justifiable reasons not to do so.

Method 3:

Financial offer and

quality

1. Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the Tender

Data.







Method 4:

Financial offer, quality

and preferences

1. Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the Tender

Data.


3. Confirm that tenderers are eligible for the preferences claimed, and if so, score tender evaluation points for preferencing.





Score financial offers, preferences and quality, as relevant, to two decimal places.

F.3.11.2

Scoring Financial Offers

Score the financial offers of remaining responsive tender offers using the following formula:

NFO = W1 X A where:

NFO = The number of tender evaluation points awarded for the financial offer.

W1 = The maximum possible number of tender evaluation points awarded for the financial offer as stated in the Tender Data.

A = A number calculated using either formulas 1 or 2 below as stated in the Tender Data.

Formula Basis for comparison Option 1 Option 2

1 Highest price or discount ( 1 + (P – Pm) )

Pm P/Pm

2 Lowest price or percentage commission/fee ( 1 - (P – Pm) )

Pm Pm/P

Where:

Pm = The comparative offer of the most favourable tender offer

P = The comparative offer of tender offer under consideration.

F.3.11.3 Scoring quality (functionality)

Score quality in each of the categories stated in the Tender Data and calculate total score for quality.

F.3.12 Insurance provided by the employer

If requested by the proposed successful tenderer, submit for the tenderer’s information the policies and/or certificates of insurance which the conditions of

contract data, revenue require the employer to provide.

F.3.13 Acceptance of tender offer

F.3.13.1 Accept tender offer only if the tenderer satisfies the legal requirements stated in the Tender Data.

F.3.13.2 Notify the successful tenderer of the employer’s acceptance of his tender offer by completing and returning one copy of the form of offer and

acceptance before the expiry of the validity period stated in the tender data, or agreed additional period. Providing the form of offer and acceptance does not

contain any qualifying statements, it will constitute the formation of a contract between the employer and the successful tenderer as described in the form of

offer and acceptance.

F.3.14 Notice to unsuccessful tenderers

After the successful tenderer has acknowledged the employer’s notice of acceptance, notify other tenderers that their tender offers have not been accepted.

F.3.15 Prepare contract documents


If necessary, revise documents that shall form part of the contract and that were issued by the employer as part of the tender documents to take account of:

a) addenda issued during the tender period,

b) inclusion of some of the returnable documents,

c) other revisions agreed between the employer and the successful tenderer, and

d) the schedule of deviations attached to the form of offer and acceptance, if any.

F.3.16 Issue final contract

Prepare and issue the final draft of contract documents to the successful tenderer for acceptance as soon as possible after the date of the employer’s signing

of the form of offer and acceptance (including the schedule of deviations, if any). Only those documents that the conditions of tender require the tenderer to

submit, after acceptance by the employer, shall be included.

F.3.17 Complete adjudicator’s contract

Unless alternative arrangements have been agreed or otherwise provided for in the contract, arrange for both parties to complete formalities for appointing

the selected adjudicator at the same time as the main contract is signed.

F.3.18 Provide copies of the contracts

Provide to the successful tenderer the number of copies stated in the Tender Data of the signed copy of the contract as soon as possible after completion and

signing of the form of offer and acceptance.





Part T2: Returnable Documents

T2.1 List of Returnable Documents

T2.2 Returnable Schedules





T2.1: LIST OF RETURNABLE DOCUMENTS

The tenderer must complete the following returnable documents:

1 Returnable Schedules required only for tender evaluation purposes

• Certificate of Attendance at Briefing Meeting

• Record of Addenda to Tender Documents

• Certificate of Authority for Signatory

• Certificate of Authority for Joint Ventures (where applicable)

• Schedule of the Tenderer’s Experience

• Proof of WCA registration

• CIDB Grading

• An original valid Tax Clearance Certificate issued by the South African Revenue Services OR SARS Issued PIN.

• CSD REGISTRATION

2 Other documents required only for tender evaluation purposes

If the Tenderer wishes to submit an alternative tender offer, all information must be submitted as per Clause F2.12 of the Tender Data as

specified under Part 1: Tender Procedure.

3 Returnable Schedules that will be incorporated into the contract

• Preferencing Schedule

• CV’s of key personnel

• Preliminary Programme with defined Milestones, Method Statement and Quality Management Plan

• Schedule of Proposed Subcontractors

• Estimated Monthly Expenditure

• Schedule of Information (Banking Details etc.)

• Proposed Amendments and Qualifications

4 C1.1 The “Offer” portion of C1.1: Form of Offer and Acceptance

NB: To be signed by authorized representative

5 C1.2 Part 2 of C1.2: Contract Data





Part T2.2: Returnable Schedules

Certificate of Attendance at Briefing Meeting

Record of Addenda to Tender Documents

Certificate of Authority for Signatory

Certificate of Authority for Joint Ventures

Compulsory Enterprise Questionnaire

Schedule of Proposed Subcontractors

Schedule of Tenderers Experience

CV’s of Key Personnel

Rates for Special Materials

Preliminary Programme, Method Statement and Quality Management Plan

Estimated Monthly Expenditure

Schedule of Information to be provided by Tenderer

Proposed Amendments and Qualifications

Compulsory MBD 2, 3.3, 6.1, 6.2, 8, 9

BOQ



Certificate of Attendance at COMPULSORY Briefing Meeting

This is to certify that I, ………………………………………………………………………………… Representative of (tenderer)

…………………………………………………………………………………………………………………………. (name of company)

Of (address)

……………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………..

Telephone Number …………………………………………………………………………………………………………………

Fax number ……………………………………………………………………………………………………………….

attended project briefing session on date…………………………………………………………………………

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


Record of Addenda to Tender Documents

We confirm that the following communications received from the Employer before the submission of this tender offer, amending the tender documents, have

been taken into account in this tender offer:

Date Title or Details

1.

2.

3.

4.

Attach additional pages if more space is required.

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________

Certificate of Authority for Signatory

Signatories for close corporations and companies shall confirm their authority by attaching to this form a duly signed and dated copy of the relevant

resolution of their members or their board of directors, as the case may be.

An example is shown below:

“By resolution of the board of directors taken on ………………………………………..20……………………….

Mr/Ms…………………………………………………………………………………………………………………….

Has been duly authorized to sign all documents in connection with this tender number KH 011 / 2018 and any contract which may arise therefrom

on behalf of

(block capitals)…………………………………………………………………………………………………………………..

……………………………………………………………………………………………………………………………..

Attach:


• Certified copy of extract from minutes

• Company Documents

• Bank reference

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


Certificate of Authority for Joint Ventures

This Returnable Schedule is to be completed by joint ventures.

We, the undersigned, are submitting this tender offer in Joint Venture and hereby authorize Mr/Ms…………

……………………………………………….., authorized signatory of the company ………………………………

……………………………………………………………., acting in the capacity of lead partner, to sign all documents in connection with the

tender offer and any contract resulting from it on our behalf.

NAME OF FIRM ADDRESS DULY AUTHORISED SIGNATORY

Lead Partner

Signature…………………………...

Name………………………………..

Designation………………………...


Name………………………………..



Name………………………………..



Compulsory Enterprise Questionnaire

The following particulars must be furnished. In the case of a joint venture, separate enterprise questionnaires in respect of each partner

Section 1: Name of enterprise: …………………………………………………………………………………………..……

Section 2: VAT registration number, if any:…………………………………………………………………………………

Section 4: Particulars of sole proprietors and partners in partnerships

Name* Identity number* Personal income tax number*

* Complete only if sole proprietor or partnership and attach separate page if more than 3 partners

Section 5: Particulars of companies and close corporations

Company registration number ………………………………………………………………………………………………….

Close corporation number……………………………………………………………………………………………………….

Tax reference number…………………………………………………………………………………………………………….

Section 6: Record of service of the state

Indicate by marking the relevant boxes with a cross, if any sole proprietor, partner in a partnership or director, manager, principal shareholder of stakeholder

in a company or close corporation is currently or has been within the last 12 months in the service of any of the following:

c A member of any municipal council

c A member of any provincial legislature

c A member of the National Assembly or the National Council of

Province

c A member of the board of directors of any municipal entity

c An official of any municipality or municipal entity

c An employee of any provincial department, national or provincial

public entity or constitutional institution within the meaning of the

Public Finance Management Act, 1999 (Act 1 of 1999)

c A member of an accounting authority of any national or provincial

public entity

c An employee of Parliament or a provincial legislature

If any of the above boxes are marked, disclose the following:

Name of sole proprietor, partner, director,

manager, principal shareholder or

stakeholder

Name of institution, public office, board of

organ of state and position held

Status of service

(tick appropriate column)

Current Within last 12

months

*insert separate page if necessary


iii. confirms that no partner, member, director or other person, who wholly or partly exercises, or may exercise, control over the enterprise appears, has within

the last five years been convicted of fraud or corruption;

iv. confirms that I/we are not associated, linked or involved with any other tendering entities submitting tender offers and have no other relationship with any

of the tenderers or those responsible for compiling the scope of work that could cause or be interpreted as a conflict of interest;

v. confirms that the contents of this questionnaire are within my personal knowledge and are to the best of my belief both true and correct.

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Enterprise Name ________________________________________________________________________________________________________

Section 7: Record of spouses, children and parents in the service of the state

Indicate by marking the relevant boxes with a cross, if any spouse, child or parent of a sole proprietor, partner in a partnership or director, manager, principal

shareholder or stakeholder in a company or close corporation is currently or has, within the last 12 months been in the service of any of the following:

c A member of any municipal council

c A member of any provincial legislature

c A member of the National Assembly or the National Council of

Province

c A member of the board of directors of any municipal entity

c An official of any municipality or municipal entity

c An employee of any provincial department, national or provincial

public entity or constitutional institution within the meaning of the

Public Finance Management Act, 1999 (Act 1 of 1999)

c A member of an accounting authority of any national or provincial

public entity

c An employee of Parliament or a provincial legislature

Name of spouse, child or parent Name of institution, public office, board or

organ of state and position held

Status of service

(tick appropriate column)

Current Within last 12

months

*insert separate page if necessary

The undersigned, who warrants that he/she is duly authorized to do so on behalf of the enterprise:

i. authorizes the Employer to obtain a tax clearance certificate from the South African Revenue Services that my/our tax matters are in order;

ii. confirms that neither the name of the enterprise or the name of any partner, manager, director or other person, who wholly or partly exercises, or may

exercise, control over the enterprise appears on the Register of Tender Defaulters established in terms of the Prevention and Combating of Corrupt

Activities Act of 2004;


Schedule of Proposed Subcontractors

The provisions of Subclause 6 of the General Conditions of Contract will apply to the Schedule of Proposed Subcontractors

Subcontractor Portion/Type of work to be undertaken Estimated value of work

Name Telephone No.


Schedule of the Tenderers Experience

The following is a statement of similar work successfully executed by myself/ourselves:

Employer, contact person and

telephone number

Description of contract Value of work inclusive of VAT

(Rand)

Date Completed

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


CV’s of Key Personnel

Complete and make copies of template as required

Name Surname Nationality Date of Birth Current Residence Education Major Experience

Commitment to the Project

The undersigned commits him/her to the overall project. He/she does not intend to cancel his/her contract or to leave the company, which employs him/her

within the overall duration of the entire project.

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


Preliminary Programme, Method Statement and Quality Management Plan

The Tenderer shall attach a Preliminary Programme, reflecting the proposed sequence, duration and milestones of execution of the various

activities comprising the work for this contract. The programme shall be in accordance with the information provided and with all other relevant

aspects of the tender.

The Tenderer shall attach a Method Statement that adequately details all activities, durations and any associated risks in terms of airside operations

envisaged on this contract.

The Tenderer shall also attach his Quality Management Plan showing clearly how quality assurance and process control will be managed both at

the plant and on site. The plan will be used to evaluate the tenders as the quality of workmanship is of highest priority in this contract. Any quality

certification by recognized international body must be stated.

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


Estimated Monthly Expenditure

The Tenderer shall state his estimated value of the work to be completed every month, based on his preliminary programme and his Tendered value, in the table

below. VAT is not to be included.

MONTH VALUE

1. R

2. R

3. R

4. R

5. R

TOTAL:R

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________

The following documentation should also be provided with the tender:

1. Letter of Good Standing from the Compensation Commissioner or licensed compensation insurer.

2. COID Insurance

3. Contractors all Risks Insurance

4. CIDB Grading Certificate

5. Bank confirmation letter

Declaration

I/we ……………………………………………………. Declare that the above information provided is correct.

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


Schedule of Information to be provided by Tenderer

1. Company details:

Registered Address:………………………………………………………………………………………………

……………………………………………………………………………………………………………………….

Contact Person:…………………………………………………………………………………………………….

Telephone:…………………………………………………………………………………………………………..

Fax:…………………………………………………………………………………………………………………..

2. Shareholders

Names/Percentages of holdings:………………………………………………………………………………

3. Bankers

Bank:…………………………………………………………………………………………………………………

Branch:………………………………………………………………………………………………………………

Account Number:…………………………………………………………………………………………

4. Turnover

Approximate turnover for each of the past three years

2016

2017

2018

5. Management and Manpower Resources

Supervisors

Labourers

Other

Name of Supervisor to be allocated to this Contract.

6. Construction Equipment (Value in R)

Equipment owned by Company

Own workshop/stores (location)

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


Proposed Amendments and Qualifications

The Tenderer should record any deviations or qualifications he may wish to make to the tender documents in this Returnable Schedule.

Alternatively, a tenderer may state such deviations and qualifications in a covering letter to his tender and reference such letter in this schedule.

The Tenderer’s attention is drawn to clause F.2.8 of the Standard Conditions of Tender referenced in the Tender Data regarding the employer’s

handling of material deviations and qualifications.

Page Clause or item Proposal

Signed _________________________________________________ Date _______________________________________________

Name _________________________________________________ Position _____________________________________________

Tenderer ______________________________________________________________________________________________________________


MBD 2

TAX CLEARANCE CERTFICATE REQUIREMENTS

It is a condition of bid that the taxes of the successful bidder must be in order, or that

satisfactory arrangements have been made with South African Revenue Service (SARS) to meet

the bidder’s tax obligations.

1. In order to meet this requirement bidders are required to complete in full the attached form TCC 001

“Application for a Tax Clearance Certificate” and submit it to any SARS branch office nationally. The Tax

Clearance Certificate Requirements are also applicable to foreign bidders / individuals who wish to submit

bids.

2. SARS will then furnish the bidder with a Tax Clearance Certificate that will be valid for a period of 1 (one) year

from the date of approval.

3. The original Tax Clearance Certificate must be submitted together with the bid. Failure to submit the original

and valid Tax Clearance Certificate will result in the invalidation of the bid. Certified copies of the Tax

Clearance Certificate will not be acceptable.

4. In bids where Consortia / Joint Ventures / Sub-contractors are involved, each party must submit a separate

Tax Clearance Certificate.

5. Copies of the TCC 001 “Application for a Tax Clearance Certificate” form are available from any SARS branch

office nationally or on the website www.sars.gov.za.

6. Applications for the Tax Clearance Certificates may also be made via eFiling. In order to use this provision,

taxpayers will need to register with SARS as eFilers through the website www.sars.gov.za.


MBD 3.3

PRICING SCHEDULE

(Professional Services)

Name of Bidder:……………………………………………………………………. Bid Number:

………….……………………………

Closing Time: ………….……………………. Closing Date …………………………………………

OFFER TO BE VALID FOR …………DAYS FROM THE CLOSING DATE OF BID.

ITEM DESCRIPTION BID PRICE IN RSA CURRENCY

NO **(ALL APPLICABLE TAXES INCLUDED)

1. The accompanying information must be used for the formulation

of proposals.

2. Bidders are required to indicate a ceiling price based on the total

estimated time for completion of all phases and including all

expenses inclusive of all applicable taxes for the project. R………..……………

3. PERSONS WHO WILL BE INVOLVED IN THE PROJECT AND

RATES APPLICABLE (CERTIFIED INVOICES MUST BE

RENDERED IN TERMS HEREOF)

4. PERSON AND POSITION HOURLY RATE DAILY RATE

------------------------------------R---------------------------------------- --------------------------------------------------------

---------------------- R--------------------------------------------------------------------------------------------------------------

----------R------------------------------------------------------------------------------------------------------------------------R-----------------------

-------------------------------------------------------------------------------------------------R----------------------------------------------------------

---------------------------

5. PHASES ACCORDING TO WHICH THE PROJECT WILL BE

COMPLETED, COST PER PHASE AND MAN-DAYS TO BE

SPENT

----------------- R------------------------------ ---------------- days

----------------------- R------------------------------ ---------------- days

-------------------------R------------------------------ ---------------- days

---------------------------R------------------------------ ---------------- days

5.1Travel expenses (specify, for example rate/km and total km, class

of airtravel, etc). Only actual costs are recoverable. Proof of the

expenses incurred must accompany certified invoices.

DESCRIPTION OF EXPENSE TO BE INCURRED RATE QUANTITY AMOUNT

--------------------------------------------- ………………. …………….. R…………

---------------------------------------------- ………………. …………… R…………

--------------------------------------------- ………………. …………..... R………...

------------------------------------------------ ………………. …………… R………...

**“all applicable taxes” includes value-added taxes, pay as you earn, income tax, unemployment insurance fund contributions and

skills development levies.

5.2Other expenses, for example accommodation (specify, eg. Three


star hotel, bed and breakfast, telephone cost, reproduction cost,

etc.). On basis of these particulars, certified invoices will be checked

for correctness. Proof of the expenses must accompany invoices.

DESCRIPTION OF EXPENSE TO BE INCURRED RATE QUANTITY AMOUNT

----------------------------------------------------------------- ……........ R…………

--------------- ……… …............ R…………

------------------------------------------……... ……….. R……........

---------------------------------------------------……… ……… R…….......

TOTAL: R……………………………………

6. Period required for commencement with project after acceptance of bid

……………………………………………………………….

7. Estimated man-days for completion of project

……………………………………………………………….

8. Are the rates quoted firm for the full period of contract?

……………………………………………*YES/ NO.

9. If not firm for the full period, provide details of the basis on which

adjustments will be applied for, for example consumer price index………………………………………………

……………………………………………………………….

……………………………………………………………….

……………………………………………………………….

*Delete if not applicable


MBD 6.1

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011

This preference form must form part of all bids invited. It contains general information and serves as a claim form for preference points for Broad-Based

Black Economic Empowerment (B-BBEE) Status Level of Contribution

NB: BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND

DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT

REGULATIONS, 2011.

1. GENERAL CONDITIONS

1.1 The following preference point systems are applicable to all bids:

- the 80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable taxes included); and

- the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable taxes included).

1.2 The value of this bid is estimated to exceed/not exceed R50 000 000 (all applicable taxes included) and therefore the………80/10……system

shall be applicable.

1.3 Preference points for this bid shall be awarded for:

(a) Price; and

(b) B-BBEE Status Level of Contribution.

1.3.1 The maximum points for this bid are allocated as follows:

POINTS

1.3.1.1 PRICE 80

1.3.1.2 B-BBEE STATUS LEVEL OF CONTRIBUTION 20

Total points for Price and B-BBEE must not exceed 100

1.4 Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification Certificate from a Verification Agency

accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of

Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be interpreted to

mean that preference points for B-BBEE status level of contribution are not claimed.

1.5. The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate any claim

in regard to preferences, in any manner required by the purchaser.

2. DEFINITIONS

2.1 “all applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment insurance

fund contributions and skills development levies;

2.2 “B-BBEE” means broad-based black economic empowerment as defined in section 1 of the Broad

-Based Black Economic Empowerment Act;

2.3 “B-BBEE status level of contributor” means the B-BBEE status received by a measured entity based

on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued

in terms of section 9(1) of the Broad-Based Black Economic

Empowerment Act;

2.4 “bid” means a written offer in a prescribed or stipulated form in response to an invitation by an

organ of state for the provision of services, works or goods, through price quotations, advertised


competitive bidding processes or proposals;

2.5 “Broad-Based Black Economic Empowerment Act” means the Broad-Based Black Economic

Empowerment Act, 2003 (Act No. 53 of 2003);

2.6 “comparative price” means the price after the factors of a non-firm price and all unconditional

discounts that can be utilized have been taken into consideration;

2.7 “consortium or joint venture” means an association of persons for the purpose of combining their

expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract;

2.8 “contract” means the agreement that results from the acceptance of a bid by an organ of state;

2.9 “EME” means any enterprise with an annual total revenue of R5 million or less .

2.10 “Firm price” means 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 the 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;

2.11 “functionality” means the measurement according to predetermined norms, as set out in the bid

documents, of a service or commodity that is designed to be practical and useful, working or

operating, taking into account, among other factors, the quality, reliability, viability and durability of a

service and the technical capacity and ability of a bidder;

2.12 “non-firm prices” means all prices other than “firm” prices;

2.13 “person” includes a juristic person;

2.14 “rand value” means the total estimated value of a contract in South African currency, calculated at

the time of bid invitations, and includes all applicable taxes and excise duties;

2.15 “sub-contract” means the primary contractor’s assigning, leasing, making out work to, or employing, another person to support such primary

contractor in the execution of part of a project in terms of the contract;

2.16 “total revenue” bears the same meaning assigned to this expression in the Codes of Good

Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based

Black Economic Empowerment Act and promulgated in the Government Gazette on 9 February

2007;

2.17 “trust” means the arrangement through which the property of one person is made over or

bequeathed to a trustee to administer such property for the benefit of another person; and

2.18 “trustee” means any person, including the founder of a trust, to whom property is bequeathed in

order for such property to be administered for the benefit of another person.

3. ADJUDICATION USING A POINT SYSTEM

3.1 The bidder obtaining the highest number of total points will be awarded the contract.

3.2 Preference points shall be calculated after prices have been brought to a comparative basis taking into account all factors of non-firm prices

and all unconditional discounts;.

3.3 Points scored must be rounded off to the nearest 2 decimal places.

3.4 In the event that two or more bids have scored equal total points, the successful bid

must be the one scoring the highest number of preference points for B-BBEE.

3.5 However, when functionality is part of the evaluation process and two or more bids have

scored equal points including equal preference points for B-BBEE, the successful bid must

be the one scoring the highest score for functionality.

3.6 Should two or more bids be equal in all respects, the award shall be decided by the

drawing of lots.


4. POINTS AWARDED FOR PRICE

4.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20 or 90/10

or

Where

Ps = Points scored for comparative price of bid under consideration

Pt = Comparative price of bid under consideration

Pmin = Comparative price of lowest acceptable bid

5. Points awarded for B-BBEE Status Level of Contribution

5.1 In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference points must be awarded to a bidder for attaining

the B-BBEE status level of contribution in accordance with the table below:

B-BBEE Status Level of

Contributor

Number of points

(90/10 system)

Number of points

(80/20 system)

1 10 20

2 9 18

3 8 16

4 5 12

5 4 8

6 3 6

7 2 4

8 1 2

Non-compliant contributor 0 0

5.2 Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an Accounting Officer as contemplated in the CCA

or a Verification Agency accredited by SANAS or a Registered Auditor. Registered auditors do not need to meet the prerequisite for IRBA’s

approval for the purpose of conducting verification and issuing EMEs with B-BBEE Status Level Certificates.

5.3 Bidders other than EMEs must submit their original and valid B-BBEE status level verification certificate or a certified copy thereof,

substantiating their B-BBEE rating issued by a Registered Auditor approved by IRBA or a Verification Agency accredited by SANAS.

5.4 A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a legal entity,

provided that the entity submits their B-BBEE status level certificate.

5.5 A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an unincorporated

entity, provided that the entity submits their consolidated B-BBEE scorecard as if they were a group

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structure and that such a consolidated B-BBEE scorecard is prepared for every separate bid.

5.6 Tertiary institutions and public entities will be required to submit their B-BBEE status level certificates in terms of the specialized scorecard contained

in the B-BBEE Codes of Good Practice.

5.7 A person will not be awarded points for B-BBEE status level if it is indicated in the bid documents that

such a bidder 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 bidder qualifies for, unless the intended sub-

contractor is an EME that has the capability and ability to execute the sub-contract.

5.8 A person 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 EME that has the capability and ability to execute the

sub-contract.

6. BID DECLARATION

6.1 Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the following:

7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.3.1.2 AND 5.1

7.1 B-BBEE Status Level of Contribution: …………. = ……………(maximum of 10 or 20 points)

(Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 5.1 and must be substantiated by

means of a B-BBEE certificate issued by a Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or an

Accounting Officer as contemplated in the CCA). An Affidavit can also be produced in this regard

8 SUB-CONTRACTING

8.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable)

8.1.1 If yes, indicate:

(i) what percentage of the contract will be subcontracted? ............……………….…%

(ii) the name of the sub-contractor? ………………………………………………………

(iii) the B-BBEE status level of the sub-contractor? ……………..

(iv) whether the sub-contractor is an EME? YES / NO (delete which is not applicable)

9 DECLARATION WITH REGARD TO COMPANY/FIRM

9.1 Name of firm :

9.2 VAT registration number :

9.3 Company registration number :

9.4 TYPE OF COMPANY/ FIRM

� Partnership/Joint Venture / Consortium

� One person business/sole propriety

� Close corporation

� Company

� (Pty) Limited

[TICK APPLICABLE BOX]

9.5 DESCRIBE PRINCIPAL BUSINESS ACTIVITIES

………….. .........................................................................................................................................................................................................


……………… ........................................................................................................................................................................................................

…………….. .........................................................................................................................................................................................................

9.6 COMPANY CLASSIFICATION

� Manufacturer

� Supplier

� Professional service provider

� Other service providers, e.g. transporter, etc.

[TICK APPLICABLE BOX]

9.7 MUNICIPAL INFORMATION

Municipality where business is situated …………………………………………………………………..

Registered Account Number …………………………….

Stand Number ……………………………………………….

9.8 TOTAL NUMBER OF YEARS THE COMPANY/FIRM HAS BEEN IN BUSINESS?

……………………………………

9.9 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on

the B-BBE status level of contribution indicated in paragraph 7 of the foregoing certificate, qualifies the company/ firm for the

preference(s) shown and I / we acknowledge that:

(i) The information furnished is true and correct;

(ii) The preference points claimed are in accordance with the General Conditions as indicated in paragraph 1 of this form.

(iii) In the event of a contract being awarded as a result of points claimed as shown in paragraph 7, the contractor may be

required to furnish documentary proof to the satisfaction of the purchaser that the claims are correct;

(iv) If the B-BBEE status level of contribution has been claimed or obtained on a fraudulent basis or any of the conditions of

contract have not been fulfilled, the purchaser may, in addition to any other remedy it may have –

(a) disqualify the person from the bidding process;

(b) recover costs, losses or damages it has incurred or suffered as a result of that person’s conduct;

(c) cancel the contract and claim any damages which it has suffered as a result of having to make less favourable

arrangements due to such cancellation;

(d) restrict the bidder or contractor, its shareholders and directors, or only the shareholders and directors who acted

on a fraudulent basis, from obtaining business from any organ of state for a period not exceeding 10 years,

after the audi alteram partem (hear the other side) rule has been applied; and

(e) forward the matter for criminal prose

WITNESSES:

1. ………………………………………

……………………………………………………………………….

SIGNATURE(S) OF BIDDER(S)


2. ………………………………………

DATE:………………………………..

ADDRESS:…………………………..

….…………………………………….

……………………………………….

…………….…………………………


MBD 6.2

DECLARATION CERTIFICATE FOR LOCAL PRODUCTION AND CONTENT

This Municipal Bidding Document (MBD) must form part of all bids invited. It contains general information and serves as a declaration

form for local content (local production and local content are used interchangeably).

Before completing this declaration, bidders must study the General Conditions, Definitions, Directives applicable in respect of Local

Content as prescribed in the Preferential Procurement Regulations, 2011 and the South African Bureau of Standards (SABS) approved

technical specification number SATS 1286:201x.

1. General Conditions

1.1. Preferential Procurement Regulations, 2011 (Regulation 9.(1) and 9.(3) make provision for the promotion of local production and

content.

1.2. Regulation 9.(1) prescribes that in the case of designated sectors, where in the award of bids local production and content is of

critical importance, such bids must be advertised with the specific bidding condition that only locally produced goods, services or

works or locally manufactured goods, with a stipulated minimum threshold for local production and content will be considered.

1.3. Regulation 9.(3) prescribes that where there is no designated sector, a specific bidding condition may be included, that only locally

produced services, works or goods or locally manufactured goods with a stipulated minimum threshold for local production and

content, will be considered.

1.4. Where necessary, for bids referred to in paragraphs 1.2 and 1.3 above, a two-stage bidding process may be followed, where the first

stage involves a minimum threshold for local production and content and the second stage price and B-BBEE.

1.5. A person awarded a contract in relation to a designated sector, may not sub-contract in such a manner that the local production and

content of the overall value of the contract is reduced to below the stipulated minimum threshold.

1.6. The local content (LC) as a percentage of the bid price must be calculated in accordance with the SABS approved technical

specification number SATS 1286: 201x as follows:

LC = 1 x 100

Where

x imported content

y bid price excluding value added tax (VAT)

Prices referred to in the determination of x must be converted to Rand (ZAR) by using the exchange rate published by the South

African Reserve Bank (SARB) at 12:00 on the date, one week (7 calendar days) prior to the closing date of the bid as required in

paragraph 4.1 below.

1.7. A bid will be disqualified if:

• the bidder fails to achieve the stipulated minimum threshold for local production and content indicated in paragraph 3

below; and.

• this declaration certificate is not submitted as part of the bid documentation.

2. Definitions

2.1. “bid” includes advertised competitive bids, written price quotations or proposals;

2.2. “bid price” price offered by the bidder, excluding value added tax (VAT);


2.3. “contract” means the agreement that results from the acceptance of a bid by an organ of state;

2.4. “designated sector” means a sector, sub-sector or industry that has been designated by the Department of Trade and Industry in

line with national development and industrial policies for local production, where only locally produced services, works or goods

or locally manufactured goods meet the stipulated minimum threshold for local production and content;

2.5. “duly sign”means a Declaration Certificate for Local Content that has been signed by the Chief Financial Officer or other legally

responsible person nominated in writing by the Chief Executive, or senior member / person with management responsibility(close

corporation, partnership or individual).

2.6. “imported content” means that portion of the bid price represented by the cost of components, parts or materials which have been

or are still to be imported (whether by the supplier or its subcontractors) and which costs are inclusive of the costs abroad, plus

freight and other direct importation costs, such as landing costs, dock duties, import duty, sales duty or other similar tax or duty at

the South African port of entry;

2.7. “local content” means that portion of the bid price which is not included in the imported content, provided that local manufacture

does take place;

2.8. “stipulated minimum threshold” means that portion of local production and content as determined by the Department of Trade

and Industry; and

2.9. “sub-contract” means the primary contractor’s assigning, leasing, making out work to, or employing another person to support

such primary contractor in the execution of part of a project in terms of the contract.

3. The stipulated minimum threshold(s) for local production and content for this bid is/are as follows:

Description of services, works or goods Stipulated minimum threshold

_______________________________ _______%

_______________________________ _______%

_______________________________ _______%

4. Does any portion of the services, works or goods offered

have any imported content? YES / NO

4.1 If yes, the rate(s) of exchange to be used in this bid to calculate the local content as prescribed in paragraph 1.6 of the general

conditions must be the rate(s) published by the SARB for the specific currency at 12:00 on the date, one week (7 calendar days)

prior to the closing date of the bid.

The relevant rates of exchange information is accessible on www.reservebank.co.za.

Indicate the rate(s )of exchange against the appropriate currency in the table below:

Currency Rates of exchange

US Dollar

Pound Sterling

Euro

Yen

Other


NB: Bidders must submit proof of the SARB rate (s) of exchange used.

LOCAL CONTENT DECLARATION BY CHIEF FINANCIAL OFFICER OR OTHER LEGALLY

RESPONSIBLE PERSON NOMINATED IN WRITING BY THE CHIEF EXECUTIVE OR SENIOR

MEMBER/PERSON WITH MANAGEMENT RESPONSIBILITY (CLOSE CORPORATION, PARTNERSHIP OR

INDIVIDUAL)

IN RESPECT OF BID No. .................................................................................

ISSUED BY: (Procurement Authority / Name of Municipality / Municipal Entity): .........................................................................................................................

NB The obligation to complete, duly sign and submit this declaration cannot be transferred to an external authorized

representative, auditor or any other third party acting on behalf of the bidder.

I, the undersigned, …………………………….................................................. (full names), do hereby declare, in my capacity as ……………………………………… ………..

of ...............................................................................................................(name of bidder entity), the following:

(a) The facts contained herein are within my own personal knowledge.

(b) I have satisfied myself that the goods/services/works to be delivered in terms of the above-specified bid comply with the minimum local content requirements as specified in the bid, and as measured in terms of SATS 1286.

(c) The local content has been calculated using the formula given in clause 3 of SATS 1286, the rates of exchange indicated in paragraph 4.1 above and the following figures:

Bid price, excluding VAT (y) R

Imported content (x) R

Stipulated minimum threshold for Local content (paragraph 3 above)

Local content % as calculated in terms of SATS 1286

If the bid is for more than one product, a schedule of the local content by product shall be attached.

(d) I accept that the Procurement Authority / Municipality /Municipal Entity has the right to request that the local content

be verified in terms of the requirements of SATS 1286.

(e) I understand that the awarding of the bid is dependent on the accuracy of the information furnished in this application. I also understand that the submission of incorrect data, or data that are not verifiable as described in SATS 1286,

may result in the Procurement Authority / Municipal / Municipal Entity imposing any or all of the remedies as provided for in Regulation 13 of the Preferential Procurement Regulations, 2011 promulgated under the Policy Framework Act (PPPFA),

2000 (Act No. 5 of 2000).

SIGNATURE: DATE: ___________

WITNESS No. 1 DATE: ___________

WITNESS No. 2 DATE: ___________


MBD 8

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES

1 This Municipal Bidding Document must form part of all bids invited.

2 It serves as a declaration to be used by municipalities and municipal entities in ensuring that when goods and

services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management

system.

3 The bid of any bidder may be rejected if that bidder, or any of its directors have:

a. abused the municipality’s / municipal entity’s supply chain management system or committed any improper

conduct in relation to such system;

b. been convicted for fraud or corruption during the past five years;

c. willfully neglected, reneged on or failed to comply with any government, municipal or other public sector

contract during the past five years; or

d. been listed in the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of

Corrupt Activities Act (No 12 of 2004).

4 In order to give effect to the above, the following questionnaire must be completed and submitted with the

bid.

Item Question Yes No

4.1 Is the bidder or any of its directors listed on the National Treasury’s Database of Restricted Suppliers as companies or persons

prohibited from doing business with the public sector?

(Companies or persons who are listed on this Database were informed in writing of this restriction by the

Accounting Officer/Authority of the institution that imposed the restriction after the audi alteram partem

rule was applied).

The Database of Restricted Suppliers now resides on the National Treasury’s

website(www.treasury.gov.za) and can be accessed by clicking on its link at the bottom of the home

page.

Yes

No

4.1.1 If so, furnish particulars:

4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the

Prevention and Combating of Corrupt Activities Act (No 12 of 2004)?

The Register for Tender Defaulters can be accessed on the National Treasury’s website

(www.treasury.gov.za) by clicking on its link at the bottom of the home page.

Yes

No


4.3 Was the bidder or any of its directors convicted by a court of law (including a court of law outside the

Republic of South Africa) for fraud or corruption during the past five years?

Yes

No



Item Question Yes No

4.4 Does the bidder or any of its directors owe any municipal rates and taxes or municipal charges to the

municipality / municipal entity, or to any other municipality / municipal entity, that is in arrears for more

than three months?

Yes

No


4.5 Was any contract between the bidder and the municipality / municipal entity or any other organ of state

terminated during the past five years on account of failure to perform on or comply with the contract?

Yes

No


CERTIFICATION

I, THE UNDERSIGNED (FULL NAME) …………..……………………………..…… CERTIFY THAT THE

INFORMATION FURNISHED ON THIS DECLARATION FORM TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST

ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………………... ……………………………………….

Signature Date

………………………………………. …………………………………………

Position Name of Bidder


MBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

1 This Municipal Bidding Document (MBD) must form part of all bids¹ invited.

2 Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement between, or concerted practice

by, firms, or a decision by an association of firms, if it is between parties in a horizontal relationship and if it involves collusive

bidding (or bid rigging).² Collusive bidding is a pe se prohibition meaning that it cannot be justified under any grounds.

3 Municipal Supply Regulation 38 (1) prescribes that a supply chain management policy must provide measures for the combating of

abuse of the supply chain management system, and must enable the accounting officer, among others, to:

a. take all reasonable steps to prevent such abuse;

b. reject the bid of any bidder if that bidder or any of its directors has abused the supply chain management system of the

municipality or municipal entity or has committed any improper conduct in relation to such system; and

c. cancel a contract awarded to a person if the person committed any corrupt or fraudulent act during the bidding process or

the execution of the contract.

4 This MBD serves as a certificate of declaration that would be used by institutions to ensure that, when bids are considered,

reasonable steps are taken to prevent any form of bid-rigging.

5 In order to give effect to the above, the attached Certificate of Bid Determination (MBD 9) must be completed and submitted with

the bid:

¹ Includes price quotations, advertised competitive bids, limited bids and proposals.

² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise prices or lower the quality of goods and / or services

for purchasers who wish to acquire goods and / or services through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete.


MBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________

(Bid Number and Description)

in response to the invitation for the bid made by:

_________________________________________________________________________

(Name of Municipality / Municipal Entity)

do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of:_______________________________________________________that:

(Name of Bidder)

1. I have read and I understand the contents of this Certificate;

2. I understand that the accompanying bid will be disqualified if this Certificate is found not to be true and complete in every respect;

3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying bid, on behalf of the bidder;

4. Each person whose signature appears on the accompanying bid has been authorized by the bidder to determine the terms of, and to

sign, the bid, on behalf of the bidder;

5. For the purposes of this Certificate and the accompanying bid, I understand that the word “competitor” shall include any individual

or organization, other than the bidder, whether or not affiliated with the bidder, who:

(a) has been requested to submit a bid in response to this bid invitation;

(b) could potentially submit a bid in response to this bid invitation, based on their qualifications, abilities or

experience; and

(c) provides the same goods and services as the bidder and/or is in the same line of business as the bidder

6. The bidder has arrived at the accompanying bid independently from, and without consultation, communication, agreement or

arrangement with any competitor. However communication between partners in a joint venture or consortium³ will not be construed

as collusive bidding.

7. In particular, without limiting the generality of paragraphs 6 above, there has been no consultation, communication, agreement or

arrangement with any competitor regarding:

(a) prices;

(b) geographical area where product or service will be rendered (market allocation)

(c) methods, factors or formulas used to calculate prices;

(d) the intention or decision to submit or not to submit, a bid;


(e) the submission of a bid which does not meet the specifications and conditions of the bid; or

(f) bidding with the intention not to win the bid.

8. In addition, there have been no consultations, communications, agreements or arrangements with any competitor regarding the

quality, quantity, specifications and conditions or delivery particulars of the products or services to which this bid invitation relates.

9. The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly or indirectly, to any competitor,

prior to the date and time of the official bid opening or of the awarding of the contract

10. I am aware that, in addition and without prejudice to any other remedy provided to combat any restrictive practices related to bids

and contracts, bids that are suspicious will be reported to the Competition Commission for investigation and possible imposition of

administrative penalties in terms of section 59 of the Competition Act No 89 of 1998 and or may be reported to the National

Prosecuting Authority (NPA) for criminal investigation and or may be restricted from conducting business with the public sector

for a period not exceeding ten (10) years in terms of the Prevention and Combating of Corrupt Activities Act No 12 of 2004 or any

other applicable legislation.

………………………………………………… …………………………………

Signature Date

…………………………………………………. …………………………………

Position Name of Bidder

³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the

execution of a contract.





Part C1: Agreement and Contract Data

C1.1 Form of Offer and Acceptance

C1.2 Contract Data

C1.4 Adjudicator’s Appointment





NB: This form is to be completed and submitted with Tenderer’s Offer

C1.1: FORM OF OFFER AND ACCEPTANCE

Offer

The Employer, identified in the Acceptance signature block, has solicited offers to enter into a contract for:


The Tenderer, identified in the Offer signature block, has examined the documents listed in the Tender Data and addenda thereto as listed in

the Tender Schedules, and by submitting this Offer has accepted the Conditions of Tender.

By the representative of the Tenderer, deemed to be duly authorized, signing this part of this Form of Offer and Acceptance, the Tenderer

offers to perform all of the obligations and liabilities of the Contractor under the Contract including compliance with all its terms and

conditions according to their true intent and meaning for an amount to be determined in accordance with the Conditions of Contract identified

in the Contract Data.

THE OFFERED TOTAL OF THE PRICES INCLUSIVE OF VALUE ADDED TAX IS:

………………………………………………………………………………………………………………………………………………………

………………………………………………………

………………………………………………………………………………….Rand (in words);

R……………………………………………………….(in figures)

This Offer may be accepted by the Employer by signing the Acceptance part of this Form of Offer and Acceptance and returning one copy of

this document to the Tenderer before the end of the period of validity stated in the Tender Data, whereupon the Tenderer becomes the party

named as the Contractor in the Conditions of Contract identified in the Contract Data.

Signature ………………………………………………….. Date…………………………………………

Name ……………………………………………………Capacity…………………………………………

For the tenderer (Name and address of organization)

………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………….

Name and Signature of witness …………………………………………………………………………Date………………………………….


Acceptance

By signing this part of this Form of Offer and Acceptance, the Employer identified below accepts the Tenderer’s Offer. In consideration

thereof, the Employer shall pay the Contractor the amount due in accordance with the Conditions of Contract identified in the Contract Data.

Acceptance of the Tenderer’s Offer shall form an agreement between the Employer and the Tenderer upon the terms and conditions contained

in this Agreement and in the Contract that is the subject of this Agreement.

The terms of the contract, are contained in:

Part C1: Agreements and Contract Data, (which includes this Agreement)

Part C2: Pricing Data


and drawings and documents or parts thereof, which may be incorporated by reference into Parts 1 to 3 above.

Deviations from and amendments to the documents listed in the Tender Data and any addenda thereto as listed in the Tender Schedules as well

as any changes to the terms of the Offer agreed by the Tenderer and the Employer during this process of offer and acceptance, are contained in

the Schedule of Deviations attached to and forming part of this Agreement. No amendments to or deviations from said documents are valid

unless contained in this Schedule, which must be duly signed by the authorized representative (s) of both parties.

The Tenderer shall within two weeks after receiving a completed copy of this Agreement, including the Schedule of Deviations (if any),

contact the Employer’s Agent (whose details are given in the Contract Data) to arrange the delivery of any bonds, guarantees, proof of

insurance and any other documentation to be provided in terms of the Conditions of Contract identified in the Contract Data. Failure to fulfill

any of these obligations in accordance with those terms shall constitute a repudiation of this Agreement.

Notwithstanding anything contained herein, this Agreement comes into effect on the date when the Tenderer receives one fully completed

original copy of this document, including the Schedule of Deviations (if any). Unless the Tenderer (now Consultant) within five working days

of the date of such receipt notifies the Employer in writing of any reason why he cannot accept the contents of this Agreement, this Agreement

shall constitute a binding contract between the parties.

Signature ………………………………………………….. Date…………………………………………

Name ……………………………………………………

Capacity ……………………………………………………

For the

Employer KHAI MA LOCAL MUNICIPALITY

P. O. Box 108

Pofadder

8890

Name and Signature of

witness…………………………………………………………………………….…Date…………………………………………


Schedule of Deviations

Notes:

1. The extent of deviations from the tender documents issued by the Employer prior to the tender closing date is limited to those permitted

in terms of the Conditions of Tender,

2. A Tenderer’s covering letter shall not be included in the final contract document. Should any matter in such, letter, which constitutes a

deviation as aforesaid become the subjects of agreements reached during the process of, offer and acceptance, the outcome of such

agreement shall be recorded here,

3. Any other matter arising from the process from offer and acceptance either as a confirmation, clarification or change to the tender

documents and which it is agreed by the Parties becomes an obligation of the contract shall also be recorded here,

4. Any change of addition to the tender documents arising from the above agreements and recorded here, shall also be incorporated into the

final draft of the contract.

1 Subject Details

2 Subject Details

3 Subject Details

4 Subject Details

5 Subject Details

By the duly authorized representatives signing this Schedule of Deviations, the Employer and the Tenderer agree to and accept the foregoing

Schedule of Deviations as the only deviations from and amendments to the documents listed in the Tender Data and addenda thereto as listed

in the Tender Schedules, as well as any confirmation, clarification or changes to the terms of the offer agreed by the Tenderer and the

Employer during this process of offer and acceptance.

It is expressly agreed that no other matter whether in writing, oral communication or implied during the period between the issue of the tender

documents and the receipt by the Tenderer of a completed signed copy of this Agreement shall have any meaning or effect in the contract

between the parties arising from this Agreement


For the Tenderer:

Signature(s) ………………………………………………….. Date…………………………………………

Name(s) ……………………………………………………

Capacity ……………………………………………………

Name and

Address of

Organization ……………………………………………………

Signature of Witness…………………………………... Date…………………………………………

Name…………………………………………………

For the Employer:

Signature(s) ………………………………………………….. Date…………………………………………

Name(s) ……………………………………………………

Capacity ……………………………………………………

Name and

Address of

Organization ……………………………………………………

Name and

Signature of witness ……………………………………………Date…………………………………………





C1.2: CONTRACT DATA

The General Conditions of contract 2015 shall be applicable to this contract. Details of the contract shall be finalized with the successful

Bidder.

Data provided by the Tenderer

The name of the tenderer is………………………………………………………………………………………

The address of the Tenderer is:

Telephone: ……………………………………………………

Facsimile: ……………………………………………………..

Address (physical): ……………………………………………

…………………………………………….

…………………………………………….

Address (postal: …………………………………………….

…………………………………………….

…………………………………………….

C1.4 Adjudication Procedure

The CIDB Adjudication Procedure shall be used in the case of any dispute. The Chief Executive Officer of the CIDB shall be

responsible for appointing the adjudicator.





Pricing Data

C2.1 Pricing Instruction

C2.2 Activity Schedule


C2.1 Pricing Instructions

The Financial Proposal should be submitted in tabular format and must contain the following:

SUMMARY OF COSTS

BREAKDOWN OF PRICE PER ACTIVITY

BREAKDOWN OF REMUNERATION PER ACTIVITY

REIMBURSABLES PER ACTIVITY

MISCELLANEOUS EXPENSES

A BOQ shall be issued in electronic format for submission with the tender.

C2.2 Activity Schedule

An activity schedule in tabular format should be included with the tender.






C3.1 Description of the Works

C3.2 Engineering

C3.3 Procurement





C3.1: Description of the Assignment

C3.1.1 Employer’s Objectives

The purpose of the project is to upgrade the Onseepkans Water Supply System to provide potable water to the communities of Melkbosrand

and Viljoensdraai.

In implementing the project, the municipality shall employ labour intensive methods. The advantage in the long-term shall be:

• an improved level of service

• Low maintenance costs

Furthermore, in a rural municipality like Khai Ma, where it is difficult to have own funds for Capital infrastructure projects due to the high

indigent population and lack of job opportunities, the use of WSIG funds for the improvement of the livelihood of residents is essential.

PROJECT SCOPE

The project entails the following:

i. Construction of new Orange River inlet works a. Replacement of pumps b. Provision of Telemetry for pump station

ii. Construction of new pipeline from inlet works to the Onseepkans Water Treatment Works

iii. Refurbishment of Onseepkans Water Treatment Works a. Replacement of chemical dosing equipment b. Provision of additional filter capacity c. Replacement of filter media d. Replacement and refurbishment of pumping equipment

iv. Construction of new 1 ML reservoir (Elevated Tower) v. Commissioning of rehabilitated WTW

vi. Replacement of Pipeline to Viljoensdraai Construction of Viljoensdraai 500 kl Storage Tank

PROJECT CONCEPT

• In addition the following must be done

o Environmental Management Plan

o Labour maximization by

§ Designing for labour intensive methods


§ 10% labour maximization targets

o SMME Development by

§ Having a 20% SMME Contract Participation Goal

§ Sourcing materials locally

o Capacity Building through

§ Practical site experience

§ Formal accredited technical and entrepreneurship training

§ Life skills training

The critical factors in the project are to ensure value for money, and maximization of the available resources.

C3.1.2 The work to be performed is within the jurisdiction of the Khai Ma Local Municipality in Onseepkans (Melkbosrand, Sending, and

Viljoensdraai)

C3.1.3 Extent of the Works

C3.2: Engineering

C3.2.3 Project Implementation


CONSTRUCTION APPROACHES

Construction generally has become a highly mechanized process but, over the past few years, the possibility of creating

employment opportunities has led to greater use of labour-intensive technologies. Additionally, the encouragement of small

businesses, owned by the previously disadvantaged, has led to the greater use of these affirmable business enterprises as

contractors and subcontractors. The benefits of using labour-intensive construction or of using affirmable business

enterprises would include a reduction in unemployment within Khai Ma by creating productive jobs and opportunities. There are

thus three construction approaches that can be adopted, although a mix may also

be appropriate:

• conventional construction (mechanized)

• labour-intensive construction, and

• construction using affirmable business enterprises.

The method of construction that is to be used may have some impact on the selection of materials and the structural design.

For this project a combination of the three will be used as not all activities can be executed by means of labour-intensive

methods.

All activities to be undertaken in the project are suitable for labor-intensive construction and utilizing emerging

contractors. The consultant shall be expected to take this into account in the design process. A 10 % labour maximization rate and 20 %

Contract participation goal for SMMEs shall be included in the tender document.

C.3.2.4

The contractor must therefore have the necessary competence (NQF Level 5) for Labour Intensive Construction. Such

qualification shall be part of the evaluation criteria.

Drawings

The consultant shall issue a detailed book of drawings to the contractor The employer shall advise the number of copies required. All

drawings must be submitted in A0, A1, A3 and electronic format. The consultant shall determine the size for tender purposes. Upon

request from the employer, the consultant shall make available copies of the drawings, even when the project has been completed.

C3.2.5 Operations and Maintenance

In order for the proper operations, the contractor is expected to assist with an O &M plan preferably with a requisite management

system in place. This shall include but not limited to determination of annual O & M budget and a management system linked to a

GIS system.

C3.3: Procurement

C3.3.1 Preferential Procurement Procedures

The contractor and consultant shall liaise with the Khai Ma Municipality CFO for any specific requirements as dictate by the Supply

Chain Management Policy for Khai Ma Municipality. A copy of the policy is attached at the end of the document

C3.3.2 Subcontracting

It is expected that the Main Contractor can subcontract works to local SMME for Local Economic Development and the Consultant will

assist the Contractor in the development and management of subcontractors.


C3.4 REPORTS AND TIME SCHEDULE

Commencement

The Contractor shall commence the assignment within seven (7) calendar days of the effective date of the contract.

Reports

e) Progress Reports: These shall be prepared at monthly intervals after commencement date, and shall detail all work performed during

the reporting period. They shall contain advanced conclusions based on the analyses substantially completed, and shall also

identify actual and anticipated difficulties and delays in the work, their causes, and the remedies proposed to solve them – 5 hard copies and

two softcopies

.

Records of Documents

After the project is complete, all final documentation, the originals of the following documents are to be deposited with the Employer;

i) All a s b u i l t drawings, both full size and photo-reduced,

drawings, all in transparent material.

ii) Tabulated test result of the materials investigations and any interpretation thereof inclusive of materials

charts, pump specifications etc…

Time Schedule

The project should be completed within 5 months of the date of appointments

Project Phasing

The appointed service providers shall liaise closely with the municipality for project implementation. The following should be noted:

• The prioritization of which roads shall be done in each financial year should be discussed and agreed with the municipality

• The available funding in each financial year should be verified with the CFO of the municipality

• The determination of cash flow should be done and submitted to the CFO for approval in each financial year

• The design process may also be phased in line with available funding

Interaction with stakeholders

The Client will convene stakeholder forums from time to time and the contractor working with the appointed consultant shall be expected to

organize logistics and present his progress and findings, complete with PowerPoint presentations and artists impressions. In particular,

stakeholder forums will be convened at inception, after completion of the project

The contractor in his financial proposal should price for holding stakeholder forums for 20 persons on four separate occasions. The pricing shall

include tea and lunch for all participants.





Part C3: Site Information


C 4.1 The Service providers should familiarize themselves with the various towns within the Khai Ma Municipality.

LOCALITY

LOCATION OF KHAI MA MUNICIPALITY

The Khai Ma local Municipality is located in the North Eastern corner of the Namakwa District Municipality. It is bordered to the

North by Namibia, across the Orange River; to the East by Khai Garib Local Municipality, to the South by Hantam Local

municipality, and to the North West by Nama Khoi and to the South West by Kamiesberg Local Municipality. The major

settlements are:

Pofadder Latitude 29° 7' 43.58"S

Longitude 19° 23' 28.36"E

Pella Latitude 29° 1' 50.90"S


Onseepkans -

Melkbosrand

Latitude 28° 44' 58.02"S


Onseepkans –

Viljoensdraai

Latitude 28° 45' 04.60"S


Onseepkans – Sending Latitude 28° 46' 17.38"S


Witbank Latitude 28° 51' 47.06"S



GOOGLE EARTH MAP SHOWING LOCATION OF SETTLEMENTS WITHIN KHAI MA


This Tender Document is issued by

OBAKENG ISAACS

MUNICIPAL MANAGER



ANNEXURE

KHAI MA LOCAL MUNICIPALITY SUPPLY CHAIN

MANAGEMENT POLICY


Khâi-Ma Municipality

REVISED SUPPLY CHAIN MANAGEMENT POLICY


MUNICIPAL SUPPLY CHAIN MANAGEMENT POLICY

LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, 2003

Council resolves in terms of section 111 of the Local Government Municipal Finance Management Act (No. 56 of 2003), to adopt the

following proposal as the revised Supply Chain Management Policy of the Khai-Ma Municipality.

TABLE OF CONTENTS

1. Definitions

CHAPTER 1

IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT POLICY

2. Supply chain management policy

3. Amendment of supply chain management policy

4. Delegation of supply chain management powers and duties

5. Subdelegations

6. Oversight role of council

7. Supply chain management units

8. Training of supply chain management officials

CHAPTER 2

SUPPLY CHAIN MANAGEMENT SYSTEM

9. Format of supply chain management system

Part 1: Demand management

10. System of demand management

Part 2: Acquisition management

11. System of acquisition management

12. Range of procurement processes

13. General preconditions for consideration of written quotations or bids

14. Lists of accredited prospective providers

15. Petty cash purchases

16. Written or verbal quotations

17. Formal written price quotations

18. Procedures for procuring goods or services through written or verbal

quotations and formal written price quotations

19. Competitive bidding process

20. Process for competitive bidding

21. Bid documentation for competitive bids

22. Public invitation for competitive bids 23. Procedure for handling, opening and recording of bids

24. Negotiations with preferred bidders

25. Two-stage bidding process

26. Committee system for competitive bids

27. Bid specification committees

28. Bid evaluation committees

29. Bid adjudication committees

30. Procurement of banking services

31. Procurement of IT related goods or services


32. Procurement of goods and services under contracts secured by other organs of state

33. Procurement of goods necessitating special safety arrangements

34. Proudly SA Campaign

35. Appointment of consultants

36. Deviation from, and ratification of minor breaches of, procurement processes

37. Unsolicited bids

38. Combating of abuse of supply chain management system

Part 3: Logistics, Disposal, Risk and Performance Management

39. Logistics management

40. Disposal management

41. Risk management

42. Performance management

Part 4: Other matters

43. Prohibition on awards to persons whose tax matters are not in order

44. Prohibition on awards to persons in the service of the state

45. Awards to close family members of persons in the service of the state

46. Ethical standards

47. Inducements, rewards, gifts and favours

48. Sponsorships

49. Objections and complaints

50. Resolution of disputes, objections, complaints and queries

51. Contracts providing for compensation based on turnover

Definitions

1. In this Policy, unless the context otherwise indicates, a word or expression to which a meaning has been assigned in the Act has the same

meaning as in the Act, and –

“competitive bidding process” means a competitive bidding process referred to in paragraph 12 (1) (d) of this Policy;

“competitive bid” means a bid in terms of a competitive bidding process;

“final award”, in relation to bids or quotations submitted for a contract, means the final decision on which bid or quote to accept;

“formal written price quotation” means quotations referred to in paragraph 12 (1) (c) of this Policy;

“in the service of the state” means to be –

(a) a member of –

(i) any municipal council;

(ii) any provincial legislature; or

(iii) the National Assembly or the National Council of Provinces;

(b) a member of the board of directors of any municipal entity;

(c) an official of any municipality or municipal entity;

(d) an employee of any national or provincial department, national or provincial public entity or constitutional institution

within the meaning of the Public Finance Management Act, 1999 (Act No.1 of 1999);


(e) a member of the accounting authority of any national or provincial public entity; or

(f) an employee of Parliament or a provincial legislature;

“long term contract” means a contract with a duration period exceeding one year;

“list of accredited prospective providers” means the list of accredited prospective providers which a municipality or municipal entity must

keep in terms of paragraph 14 of this policy;

“other applicable legislation” means any other legislation applicable to municipal supply chain management, including –

(a) the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000); Notice in terms of Section 1(iii) (f)

(b) Preferential Procurement Regulations,2011 (Gazette 8 June 2011)

(b) the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); and

(c) the Construction Industry Development Board Act, 2000 (Act No.38 of 2000);

“Regulation” means the Local Government: Municipal Supply Chain Management Regulations promulgated in Government Gazette 27636

on 30 May 2005;

“Treasury guidelines” means any guidelines on supply chain management issued by the Minister in terms of section 168 of the Act;

“the Act” means the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003);

“the Regulations” means the Local Government: Municipal Finance Management Act, 2003, Municipal Supply Chain Management

Regulations published by Government Notice 868 of 2005;

“written or verbal quotations” means quotations referred to in paragraph 12(1)(b) of this Policy.

CHAPTER 1

IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT POLICY

Supply chain management policy

2. (1) The Khai-Ma Municipality resolves in terms of section 111 of the Act to have and implement a supply chain management policy

that –

(a) gives effect to –

(i) section 217 of the Constitution; and

(ii) Part 1 of Chapter 11 and other applicable provisions of the Act;

(b) is fair, equitable, transparent, competitive and cost effective;

(c) complies with –

(i) the regulatory framework prescribed in Chapter 2 of the Regulations; and

(ii) any minimum norms and standards that may be prescribed in terms of section 168 of the Act;

(d) is consistent with other applicable legislation;


(e) does not undermine the objective for uniformity in supply chain management systems between organs of state in all

spheres; and

(f) is consistent with national economic policy concerning the promotion of investments and doing business with the

public sector.

(2) The municipality may not act otherwise than in accordance with this supply chain management policy when –

(a) procures goods or services;

(b) disposes goods no longer needed;

(c) selects contractors to provide assistance in the provision of municipal services otherwise than in circumstances where

Chapter 8 of the Municipal Systems Act applies; or

(d) selects external mechanisms referred to in section 80 (1) (b) of the Municipal Systems Act for the provision of municipal

services in circumstances contemplated in section 83 of that Act.

(3) Subparagraphs (1) and (2) of this policy do not apply in the circumstances described in section 110 (2) of the Act except where

specifically provided otherwise in this policy.

Amendment of the supply chain management policy

3. (1) The accounting officer must –

(a) at least annually review the implementation of this Policy; and

(b) when the accounting officer considers it necessary, submit proposals for the amendment of this Policy to the council.

(2) If the accounting officer submits a draft policy to the council that differs from the model policy, the accounting officer must ensure

that such draft policy complies with the Regulations. The accounting officer must report any deviation from the model policy to the

National Treasury an the relevant provincial treasury..

(3) When amending this supply chain management policy the need for uniformity in supply chain practices, procedures and forms

between organs of state in all spheres, particularly to promote accessibility of supply chain management systems for small

businesses must be taken into account.

(4) The accounting officer of a municipality must in terms of section 62(1)(f)(iv) of the Act, [or “The accounting officer of a municipal

entity must in terms of section 99 (2)(h) of the Act’] take all reasonable steps to ensure that the municipality has and implements this

supply chain management policy.

Delegation of supply chain management powers and duties

4. (1) The council hereby delegates such additional powers and duties to the accounting officer so as to enable the accounting officer –

(a) to discharge the supply chain management responsibilities conferred on accounting officers in terms of –

(i) Chapter 8 or 10 of the Act; and

(ii) this Policy;

(b) to maximise administrative and operational efficiency in the implementation of this Policy;

(c) to enforce reasonable cost-effective measures for the prevention of fraud, corruption, favouritism and unfair and irregular

practices in the implementation of this Policy; and


(d) to comply with his or her responsibilities in terms of section 115 and other applicable provisions of the Act.

(2) Sections 79 and 106 of the Act apply to the subdelegation of powers and duties delegated to an accounting officer in terms of

subparagraph (1) of this policy.

(3) The council or accounting officer may not subdelegate any supply chain management powers or duties to a person who is not an

official of the municipality or to a committee which is not exclusively composed of officials of the municipality;

(4) This paragraph may not be read as permitting an official to whom the power to make final awards has been delegated, to make a

final award in a competitive bidding process otherwise than through the committee system provided for in paragraph 26 of this

Policy.

Sub delegations

5. (1) The accounting officer may in terms of section 79 or 106 of the Act subdelegate any supply chain management powers and duties,

including those delegated to the accounting officer in terms of this Policy, but any such subdelegation must be consistent with

subparagraph (2) of this paragraph and paragraph 4 of this Policy.

(2) The power to make a final award –

(a) above R10 million (VAT included) may not be sub delegated by the accounting officer;

(b) above R2 million (VAT included), but not exceeding R10 million (VAT included), may be sub delegated but only to –

(i) the chief financial officer;

(ii) a senior manager; or

(iii) a bid adjudication committee of which the chief financial officer or a senior manager is a member; or

(c) not exceeding R2 million (VAT included) may be sub delegated but only to –


(ii) a senior manager;

(iii) a manager directly accountable to the chief financial officer or a senior manager; or

(iv) a bid adjudication committee.

(3) An official or bid adjudication committee to which the power to make final awards has been sub delegated in accordance with

subparagraph (2) must within five days of the end of each month submit to the official referred to in subparagraph (4) a written

report containing particulars of each final award made by such official or committee during that month, including –

(a) the amount of the award;

(b) the name of the person to whom the award was made; and

(c) the reason why the award was made to that person.

(4) A written report referred to in subparagraph (3) must be submitted –

(a) to the accounting officer, in the case of an award by –



(ii) a senior manager; or

(iii) a bid adjudication committee of which the chief financial officer or a senior manager is a member; or

(b) to the chief financial officer or the senior manager responsible for the relevant bid, in the case of an award by –

(i) a manager referred to in subparagraph (2)(c)(iii); or

(ii) a bid adjudication committee of which the chief financial officer or a senior manager is not a member.

(5) Subparagraphs (3) and (4) of this policy do not apply to procurements out of petty cash.

(6) This paragraph may not be interpreted as permitting an official to whom the power to make final awards has been sub

delegated, to make a final award in a competitive bidding process otherwise than through the committee system provided for in

paragraph 26 of this Policy.

(7) No supply chain management decision-making powers may be delegated to an advisor or consultant.

Oversight role of council

6. (1) The council must maintain oversight over the implementation of this supply chain management policy.

(2) For the purposes of such oversight the accounting officer must –

(a) (i) within 30 days of the end of each financial year, submit a report on the implementation of this Policy and the

supply chain management policy of any municipal entity under the sole or shared control of the municipality, to

the council of the municipality; and

(ii) whenever there are serious and material problems in the implementation of the supply chain management policy,

immediately submit a report to the council.

(3) The accounting officer must, within 10 days of the end of each quarter, submit a report on the implementation of the supply chain

management policy to the mayor.

(4) The reports must be made public in accordance with section 21A of the Municipal Systems Act.

Supply chain management unit

7. (1) The accounting officer must establish a supply chain management unit to implement this supply chain management policy.

(2) The supply chain management unit must, where possible, operate under the direct supervision of the chief financial officer or an

official to whom this duty has been delegated in terms of section 82 of the Act.

Training of supply chain management officials

8. The training of officials involved in implementing this Policy should be in accordance with any Treasury guidelines on supply chain

management training.

CHAPTER 2

SUPPLY CHAIN MANAGEMENT SYSTEM

Format of supply chain management system

9. This Policy provides systems for –


(i) demand management;

(ii) acquisition management;

(iii) logistics management;

(iv) disposal management;

(v) risk management; and

(vi) performance management.

Part 1: Demand management

System of demand management

10. The accounting officer must establish, through operational procedures, an effective system of demand management in order to ensure that the

resources required to support the strategic and operational commitment are delivered at the correct time, at the right price and at the right

location, and that the quantity and quality satisfy the needs

Part 2: Acquisition management

System of acquisition management

11. (1) The accounting officer must establish, through operational procedures, an effective system of acquisition management in order to

ensure –

(a) that goods and services are procured by the municipality in accordance with authorised processes only;

(b) that expenditure on goods and services is incurred in terms of an approved budget in terms of section 15 of the Act;

(c) that the threshold values for the different procurement processes are complied with;

(d) that bid documentation, evaluation and adjudication criteria, and general conditions of a contract, are in accordance with

any applicable legislation; and

(e) that any Treasury guidelines on acquisition management are properly taken into account.

(2) This supply chain management policy, except where provided otherwise in the policy, does not apply in respect of the procurement

of goods and services contemplated in section 110 (2) of the Act, including:

(a) water from the Department of Water Affairs or a public entity, another municipality or a municipal entity; and

(b) electricity from Eskom or another public entity, another municipality or a municipal entity.

(3) The following information must be made public wherever goods and services contemplated in section 110 (2) of the Act are

procured other than through the supply chain management system –

(a) the kind of goods or services; and

(b) the name of the supplier.

Range of procurement processes

12. (1) Goods and services may only be procured by way of –

(a) petty cash purchases, up to a transaction value of R2 000 (VAT included);

(b) written or verbal quotations for procurements of a transaction value over R2 000 up to R10 000 (VAT included);

(c) formal written price quotations for procurements of a transaction value over R10 000 up to R200 000 (VAT included); and


(d) a competitive bidding process for–

(i) procurements above a transaction value of R200 000 (VAT included); and

(ii) the procurement of long term contracts.

(2) The accounting officer may, in writing lower, but not increase, the different threshold values specified in subparagraph (1); or direct

that –

(i) written or verbal quotations be obtained for any specific procurement of a

transaction value lower than R2 000;

(ii) formal written price quotations be obtained for any specific procurement of a

transaction value lower than R10 000; or

(iii) a competitive bidding process be followed for any specific procurement of a transaction value lower than

R200 000.

(3) Goods or services may not deliberately be split into parts or items of a lesser value merely to avoid complying with the requirements

of the policy. When determining transaction values, a requirement for goods or services consisting of different parts or items must as

far as possible be treated and dealt with as a single transaction.

General preconditions for consideration of written quotations or bids

13. A written quotation or bid may not be considered unless the provider who submitted the quotation or bid –

(a) has furnished that provider’s –

(i) full name;

(ii) identification number or company or other registration number; and

(iii) tax reference number and VAT registration number, if any;

(b) has authorised the municipality to obtain a tax clearance from the South African Revenue Services that the provider’s tax matters are

in order; and

(c) has indicated –

(i) whether he or she is in the service of the state, or has been in the service of the state in the previous twelve months;

(ii) if the provider is not a natural person, whether any of its directors, managers, principal shareholders or stakeholder is in

the service of the state, or has been in the service of the state in the previous twelve months; or

(iii) whether a spouse, child or parent of the provider or of a director, manager, shareholder or stakeholder referred to in

subparagraph (ii) is in the service of the state, or has been in the service of the state in the previous twelve months.

Lists of accredited prospective providers


(a) keep a list of accredited prospective providers of goods and services that must be used for the procurement requirements

through written or verbal quotations and formal written price quotations; and


(b) at least once a year through newspapers commonly circulating locally, the website and any other appropriate ways, invite

prospective providers of goods or services to apply for evaluation and listing as accredited prospective providers;

(c) specify the listing criteria for accredited prospective providers; and

(d) disallow the listing of any prospective provider whose name appears on the National Treasury’s database as a person

prohibited from doing business with the public sector.

(2) The list must be updated at least quarterly to include any additional prospective providers and any new commodities or types of

services. Prospective providers must be allowed to submit applications for listing at any time.

(3) The list must be compiled per commodity and per type of service.

Petty cash purchases

15. The accounting officer must establish the conditions for the procurement of goods by means of petty cash purchases referred to in paragraph

12 (1)(a) of this Policy, which must include conditions –

(a) determining the terms on which a manager may delegate responsibility for petty cash to an official reporting to the manager;

(b) limiting the number of petty cash purchases or the maximum amounts per month for each manager;

(c) excluding any types of expenditure from petty cash purchases that are excluded, where this is considered necessary; and

(d) requiring monthly reconciliation report from each manager must be provided to the chief financial officer, including –

(i) the total amount of petty cash purchases for that month; and

(ii) receipts and appropriate documents for each purchase.

Written or verbal quotations

16. The accounting officer must establish the conditions for the procurement of goods or services through written or verbal quotations, which

must include conditions stating –

(a) that quotations must be obtained from at least three different providers preferably from, but not limited to, providers whose names

appear on the list of accredited prospective providers of the municipality, provided that if quotations are obtained from providers

who are not listed, such providers must meet the listing criteria set out in paragraph 14(1)(b) and (c) of this Policy;

(b) to the extent feasible, providers must be requested to submit such quotations in writing;

(c) if it is not possible to obtain at least three quotations, the reasons must be recorded and reported quarterly to the accounting officer

or another official designated by the accounting officer;

(d) the accounting officer must record the names of the potential providers requested to provide such quotations with their quoted

prices; and

(e) if a quotation was submitted verbally, the order may be placed only against written confirmation by the selected provider.

Formal written price quotations

17. (1) The accounting officer must establish the conditions for the procurement of goods or services through formal written price

quotations, which must include conditions stating –

(a) that quotations must be obtained in writing from at least three different providers whose names appear on the list of

accredited prospective providers of the municipality;


(b) that quotations may be obtained from providers who are not listed, provided that such providers meet the listing criteria set

out in paragraph 14(1)(b) and (c) of this Policy;

(c) that if it is not possible to obtain at least three quotations, the reasons must be recorded and approved by the chief financial

officer or an official designated by the chief financial officer, and

(d) the accounting officer must record the names of the potential providers and their written quotations.

(2) A designated official referred to in subparagraph (1) (c) must within three days of the end of each month report to the chief financial

officer on any approvals given during that month by that official in terms of that subparagraph.

Procedures for procuring goods or services through written or verbal quotations and formal written price quotations

18. The accounting officer must determine the operational procedure for the procurement of goods or services through written or verbal quotations

or formal written price quotations, which must stipulate –

(a) that all requirements in excess of R30 000 (VAT included) that are to be procured by means of formal written price quotations must,

in addition to the requirements of paragraph 17, be advertised for at least seven days on the website and an official notice board of

the municipality;

(b) that when using the list of accredited prospective providers the accounting officer must promote ongoing competition amongst

providers, including by inviting providers to submit quotations on a rotation basis;

(c) that the accounting officer must take all reasonable steps to ensure that the procurement of goods and services through written or

verbal quotations or formal written price quotations is not abused;

(d) the accounting officer or chief financial officer must on a monthly basis be notified in writing of all written or verbal quotations and

formal written price quotations accepted by an official acting in terms of a sub delegation; and

(e) requirements for proper record keeping.

Competitive bidding process

19. (1) Goods or services above a transaction value of R200 000 (VAT included) and long- term contracts may only be procured through a

competitive bidding process, subject to paragraph 11(2) of this Policy.

(2) No requirement for goods or services above an estimated transaction value of R200 000 (VAT included), may deliberately be split

into parts or items of lesser value merely for the sake of procuring the goods or services otherwise than through a competitive

bidding process.

Process for competitive bidding

20. The accounting officer must establish procedures for a competitive bidding process for each of the following stages:

(a) the compilation of bidding documentation; (b) the public invitation of bids;

(c) site meetings or briefing sessions, if applicable;

(d) the handling of bids submitted in response to public invitation;

(e) the evaluation of bids;

(f) the award of contracts;

(g) the administration of contracts; and.

(h) proper record keeping.

Bid documentation for competitive bids


21. The accounting officer must establish the criteria to which bid documentation for a competitive bidding process must comply, which in

addition to paragraph 13 of this policy, the bid documentation must –

(a) take into account –

(i) the general conditions of contract;

(ii) any Treasury guidelines on bid documentation; and

(iii) the requirements of the Construction Industry Development Board, in the case of a bid relating to construction, upgrading

or refurbishment of buildings or infrastructure;

(b) include evaluation and adjudication criteria, including any criteria required by other applicable legislation;

(c) compel bidders to declare any conflict of interest they may have in the transaction for which the bid is submitted;

(d) if the value of the transaction is expected to exceed R10 million (VAT included), require bidders to furnish –

(i) if the bidder is required by law to prepare annual financial statements for auditing, their audited annual financial

statements –

(aa) for the past three years; or

(bb) since their establishment if established during the past three years;

(ii) a certificate signed by the bidder certifying that the bidder has no undisputed commitments for municipal services towards

a municipality or other service provider in respect of which payment is overdue for more than 30 days;

(iii) particulars of any contracts awarded to the bidder by an organ of state during the past five years, including particulars of

any material non-compliance or dispute concerning the execution of such contract;

(iv) a statement indicating whether any portion of the goods or services are expected to be sourced from outside the

Republic, and, if so, what portion and whether any portion of payment from the municipality or municipal entity is

expected to be transferred out of the Republic; and

(e) stipulate that disputes must be settled by means of mutual consultation, mediation (with or without legal representation), or, when

unsuccessful, in a South African court of law.

Public invitation for competitive bids

22. (1) The accounting officer must determine the procedure for the invitation of competitive bids, which must stipulate that:

(a) any invitation to prospective providers to submit bids must be by means of a public advertisement in newspapers

commonly circulating locally, the website of the municipality or any other appropriate ways (which may include an

advertisement in the Government Tender Bulletin); and

(b) the information contained in a public advertisement, must include –

(i) the closure date for the submission of bids, which may not be less than 30 days in the case of transactions over

R10 million (VAT included), or which are of a long term nature, or 14 days in any other case, from the date on

which the advertisement is placed in a newspaper, subject to subparagraph (2) of this policy; and

(ii) a statement that bids may only be submitted on the bid documentation provided by the municipality or

municipal entity;


(2) The accounting officer may determine a closure date for the submission of bids which is less than the 30 or 14 days requirement, but

only if such shorter period can be justified on the grounds of urgency or emergency or any exceptional case where it is impractical

or impossible to follow the official procurement process.

(3) Bids submitted must be sealed.

(4) Where bids are requested in electronic format, such bids must be supplemented by sealed hard copies.

Procedure for handling, opening and recording of bids

23. The accounting officer must determine the procedures for the handling, opening and recording of bids, which must stipulate that:

(a) Bids –

(i) must be opened only in public;

(ii) must be opened at the same time and as soon as possible after the period for the submission of bids has expired; and

(iii) received after the closing time should not be considered and returned unopened immediately.

(b) Any bidder or member of the public has the right to request that the names of the bidders who submitted bids in time must be read

out and, if practical, also each bidder’s total bidding price;

(c) No information, except the provisions in subparagraph (b), relating to the bid should be disclosed to bidders or other persons until

the successful bidder is notified of the award; and

(d) The accounting officer must –

(i) record in a register all bids received in time;

(ii) make the register available for public inspection; and

(iii) publish the entries in the register and the bid results on the website.

Negotiations with preferred bidders

24. (1) The accounting officer may negotiate the final terms of a contract with bidders identified through a competitive bidding process as

preferred bidders, provided that such negotiation –

(a) does not allow any preferred bidder a second or unfair opportunity;

(b) is not to the detriment of any other bidder; and

(c) does not lead to a higher price than the bid as submitted.

(2) Minutes of such negotiations must be kept for record purposes.

Two-stage bidding process

25. (1) A two-stage bidding process is allowed for –

(a) large complex projects;

(b) projects where it may be undesirable to prepare complete detailed technical specifications; or


(c) long term projects with a duration period exceeding three years.

(2) In the first stage technical proposals on conceptual design or performance specifications should be invited, subject to technical as

well as commercial clarifications and adjustments.

(3) In the second stage final technical proposals and priced bids should be invited.

Committee system for competitive bids

26. (1) The accounting officer is required to –

(a) establish a committee system for competitive bids consisting of at least -

(i) a bid specification committee;

(ii) a bid evaluation committee; and

(iii) a bid adjudication committee;

(b) appoint the members of each committee, taking into account section 117 of the Act; and

(c) provide for an attendance or oversight process by a neutral or independent observer, appointed by the accounting officer,

when this is appropriate for ensuring fairness and promoting transparency.

(2) The committee system must be consistent with –

(a) paragraph 27, 28 and 29 of this Policy; and

(b) any other applicable legislation.

(3) The accounting officer may apply the committee system to formal written price quotations.

Bid specification committees

27. (1) A bid specification committee must compile the specifications for each procurement of goods or services by the municipality or

municipal entity.

(2) Specifications –

(a) must be drafted in an unbiased manner to allow all potential suppliers to offer their goods or services;

(b) must take account of any accepted standards such as those issued by Standards South Africa, the International Standards

Organisation, or an authority accredited or recognised by the South African National Accreditation System with which the

equipment or material or workmanship should comply;

(c) where possible, be described in terms of performance required rather than in terms of descriptive characteristics for

design;

(d) may not create trade barriers in contract requirements in the forms of specifications, plans, drawings, designs, testing and

test methods, packaging, marking or labeling of conformity certification;

(e) may not make reference to any particular trade mark, name, patent, design, type, specific origin or producer unless there is

no other sufficiently precise or intelligible way of describing the characteristics of the work, in which case such reference

must be accompanied by the word “equivalent”;


(f) must indicate each specific goal for which points may be awarded in terms of the points system set out in the Preferential

Procurement Regulations 2001; and

(g) must be approved by the accounting officer prior to publication of the invitation for bids in terms of paragraph 22 of this

Policy.

(3) The bid specification committee must be composed of one or more officials of the municipality or municipal entity, preferably the

manager responsible for the function involved, and may, when appropriate, include external specialist advisors.

(4) No person, advisor or corporate entity involved with the bid specification committee, or director of such a corporate entity, may bid

for any resulting contracts.

Bid evaluation committees

28. (1) The bid evaluation committee must –

(a) evaluate bids in accordance with –

(i) the specifications for a specific procurement; and

(ii) the points system set out in terms of paragraph 27(2)(f).

(b) evaluate each bidder’s ability to execute the contract;

(c) check in respect of the recommended bidder whether municipal rates and taxes and municipal service charges are not in

arrears, and;

(d) submit to the adjudication committee a report and recommendations regarding the award of the bid or any other related

matter.

(2) The bid evaluation committee must as far as possible be composed of-

(a) officials from departments requiring the goods or services; and

(b) at least one supply chain management practitioner of the municipality.

Bid adjudication committees

29. (1) The bid adjudication committee must –

(a) consider the report and recommendations of the bid evaluation committee; and

(b) either –

(i) depending on its delegations, make a final award or a recommendation to the accounting officer to make the

final award; or

(ii) make another recommendation to the accounting officer how to proceed with the relevant procurement.

(2) A bid adjudication committee must consist of at least four senior managers of the municipality or municipal entity which must

include –

(a) the chief financial officer or, if the chief financial officer is not available, another manager in the budget and treasury

office reporting directly to the chief financial officer and designated by the chief financial officer; and

(b) at least one senior supply chain management practitioner who is an official of the municipality; and


(c) a technical expert in the relevant field who is an official, if such an expert exists.

(3) The accounting officer must appoint the chairperson of the committee. If the chairperson is absent from a meeting, the members of

the committee who are present must elect one of them to preside at the meeting.

(4) Neither a member of a bid evaluation committee, nor an advisor or person assisting the evaluation committee, may be a member of a

bid adjudication committee.

(5) (a) If the bid adjudication committee decides to award a bid other than the one recommended by the bid evaluation

committee, the bid adjudication committee must prior to awarding the bid –

(i) check in respect of the preferred bidder whether that bidder’s municipal rates and taxes and municipal service

charges are not in arrears, and;

(ii) notify the accounting officer.

(b) The accounting officer may –

(i) after due consideration of the reasons for the deviation, ratify or reject the decision of the bid adjudication

committee referred to in paragraph (a); and

(ii) if the decision of the bid adjudication committee is rejected, refer the decision of the adjudication committee

back to that committee for reconsideration.

(6) The accounting officer may at any stage of a bidding process, refer any recommendation made by the evaluation committee or the

adjudication committee back to that committee for reconsideration of the recommendation.

(7) The accounting officer must comply with section 114 of the Act within 10 working days

Procurement of banking services

30. (1) Banking services –

(a) must be procured through competitive bids;

(b) must be consistent with section 7 or 85 of the Act; and

(c) may not be for a period of more than five years at a time.

(2) The process for procuring a contract for banking services must commence at least nine months before the end of an existing

contract.

(3) The closure date for the submission of bids may not be less than 60 days from the date on which the advertisement is placed in a

newspaper in terms of paragraph 22(1). Bids must be restricted to banks registered in terms of the Banks Act, 1990 (Act No. 94 of

1990).

Procurement of IT related goods or services

31. (1) The accounting officer may request the State Information Technology Agency (SITA) to assist with the acquisition of IT related

goods or services through a competitive bidding process.

(2) Both parties must enter into a written agreement to regulate the services rendered by, and the payments to be made to, SITA.

(3) The accounting officer must notify SITA together with a motivation of the IT needs if –


(a) the transaction value of IT related goods or services required in any financial year will exceed R50 million (VAT

included); or

(b) the transaction value of a contract to be procured whether for one or more years exceeds R50 million (VAT included).

(4) If SITA comments on the submission and the municipality disagree with such comments, the comments and the reasons for rejecting

or not following such comments must be submitted to the council, the National Treasury, the relevant provincial treasury and the

Auditor General.

Procurement of goods and services under contracts secured by other organs of state

32. (1) The accounting officer may procure goods or services under a contract secured by another organ of state, but only if –

(a) the contract has been secured by that other organ of state by means of a competitive bidding process applicable to that

organ of state;

(b) there is no reason to believe that such contract was not validly procured;

(c) there are demonstrable discounts or benefits to do so; and

(d) that other organ of state and the provider have consented to such procurement in writing.

(2) Subparagraphs (1)(c) and (d) do not apply if –

(a) a municipal entity procures goods or services through a contract secured by its parent municipality; or

(b) a municipality procures goods or services through a contract secured by a municipal entity of which it is the parent

municipality.

Procurement of goods necessitating special safety arrangements

33. (1) The acquisition and storage of goods in bulk (other than water), which necessitate special safety arrangements, including gasses and

fuel, should be avoided where ever possible.

(2) Where the storage of goods in bulk is justified, such justification must be based on sound reasons, including the total cost of

ownership, cost advantages and environmental impact and must be approved by the accounting officer.

Proudly SA Campaign

34. The accounting officer must determine internal operating procedures supporting the Proudly SA Campaign to the extent that, all things being

equal, preference is given to procuring local goods and services from:

• Firstly – suppliers and businesses within the municipality or district;

• Secondly – suppliers and businesses within the relevant province;

• Thirdly – suppliers and businesses within the Republic.

Appointment of consultants

35. (1) The accounting officer may procure consulting services provided that any Treasury guidelines in respect of consulting services are

taken into account when such procurements are made.

(2) Consultancy services must be procured through competitive bids if

(a) the value of the contract exceeds R200 000 (VAT included); or

(b) the duration period of the contract exceeds one year.


(3) In addition to any requirements prescribed by this policy for competitive bids, bidders must furnish particulars of –

(a) all consultancy services provided to an organ of state in the last five years; and

(b) any similar consultancy services provided to an organ of state in the last five years.

(4) The accounting officer must ensure that copyright in any document produced, and the patent rights or ownership in any plant,

machinery, thing, system or process designed or devised, by a consultant in the course of the consultancy service is vested in the

municipality.

Deviation from, and ratification of minor breaches of, procurement processes

36. (1) The accounting officer may –

(a) dispense with the official procurement processes established by this Policy and to procure any required goods or

services through any convenient process, which may include direct negotiations, but only

(i) in an emergency;

(ii) if such goods or services are produced or available from a single provider only;

(iii) for the acquisition of special works of art or historical objects where specifications are difficult to compile;

(iii) acquisition of animals for zoos and/or nature and game reserves; or

(v) in any other exceptional case where it is impractical or impossible to follow the official procurement

processes; and

(b) ratify any minor breaches of the procurement processes by an official or committee acting in terms of delegated powers or

duties which are purely of a technical nature.

(2) The accounting officer must record the reasons for any deviations in terms of subparagraphs (1)(a) and (b) of this policy and report

them to the next meeting of the council and include as a note to the annual financial statements.

(3) Subparagraph (2) does not apply to the procurement of goods and services contemplated in paragraph 11(2) of this policy.

Unsolicited bids

37. (1) In accordance with section 113 of the Act there is no obligation to consider unsolicited bids received outside a normal bidding

process.

(2) The accounting officer may decide in terms of section 113(2) of the Act to consider an unsolicited bid, only if –

(a) the product or service offered in terms of the bid is a demonstrably or proven unique innovative concept;

(b) the product or service will be exceptionally beneficial to, or have exceptional cost advantages;

(c) the person who made the bid is the sole provider of the product or service; and

(d) the reasons for not going through the normal bidding processes are found to be sound by the accounting officer.

(3) If the accounting officer decides to consider an unsolicited bid that complies with subparagraph (2) of this policy, the decision must

be made public in accordance with section 21A of the Municipal Systems Act, together with –

(a) reasons as to why the bid should not be open to other competitors;


(b) an explanation of the potential benefits if the unsolicited bid were accepted; and

(c) an invitation to the public or other potential suppliers to submit their comments within 30 days of the notice.

(4) All written comments received pursuant to subparagraph (3), including any responses from the unsolicited bidder, must be

submitted to the National Treasury and the relevant provincial treasury for comment.

(5) The adjudication committee must consider the unsolicited bid and may award the bid or make a recommendation to the accounting

officer, depending on its delegations.

(6) A meeting of the adjudication committee to consider an unsolicited bid must be open to the public.

(7) When considering the matter, the adjudication committee must take into account –

(a) any comments submitted by the public; and

(b) any written comments and recommendations of the National Treasury or the relevant provincial treasury.

(8) If any recommendations of the National Treasury or provincial treasury are rejected or not followed, the accounting officer must

submit to the Auditor General, the relevant provincial treasury and the National Treasury the reasons for rejecting or not following

those recommendations.

(9) Such submission must be made within seven days after the decision on the award of the unsolicited bid is taken, but no contract

committing the municipality to the bid may be entered into or signed within 30 days of the submission.

Combating of abuse of supply chain management system


(a) take all reasonable steps to prevent abuse of the supply chain management system;

(b) investigate any allegations against an official or other role player of fraud, corruption, favouritism, unfair or irregular

practices or failure to comply with this Policy, and when justified –

(i) take appropriate steps against such official or other role player; or

(ii) report any alleged criminal conduct to the South African Police Service;

(c) check the National Treasury’s database prior to awarding any contract to ensure that no recommended bidder, or any of its

directors, is listed as a person prohibited from doing business with the public sector;

(d) reject any bid from a bidder –

(i) if any municipal rates and taxes or municipal service charges owed by that bidder or any of its directors to the

municipality, or to any other municipality or municipal entity, are in arrears for more than three months; or

(ii) who during the last five years has failed to perform satisfactorily on a previous contract with the municipality or

any other organ of state after written notice was given to that bidder that performance was unsatisfactory;

(e) reject a recommendation for the award of a contract if the recommended bidder, or any of its directors, has committed a

corrupt or fraudulent act in competing for the particular contract;

(f) cancel a contract awarded to a person if –

(i) the person committed any corrupt or fraudulent act during the bidding process or the execution of the contract;

or


(ii) an official or other role player committed any corrupt or fraudulent act during the bidding process or the

execution of the contract that benefited that person; and

(g) reject the bid of any bidder if that bidder or any of its directors –

(i) has abused the supply chain management system of the municipality or has committed any improper conduct in

relation to such system;

(ii) has been convicted for fraud or corruption during the past five years;

(iii) has willfully neglected, reneged on or failed to comply with any government, municipal or other public sector

contract during the past five years; or

(iv) has been listed in the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of

Corrupt Activities Act (No 12 of 2004).

(2) The accounting officer must inform the National Treasury and relevant provincial treasury in writing of any actions taken in terms

of subparagraphs (1)(b)(ii), (e) or (f) of this policy.

Part 3: Logistics, Disposal, Risk and Performance Management

Logistics management

39. The accounting officer must establish and implement an effective system of logistics management in order to provide for the setting of

inventory levels, placing of orders, receiving and distribution of goods, stores and warehouse management, expediting orders, transport

management, vendor performance, maintenance and contract administration.

Disposal management

40. (1) The accounting officer must establish an effective system of disposal management for the disposal or letting of assets, including

unserviceable, redundant or obsolete assets, subject to sections 14 and 90 of the Act, which must stipulate the following:

(2) The disposal of assets must –

(a) be by one of the following methods -

(i) transferring the asset to another organ of state in terms of a provision of the Act enabling the transfer of assets;

(ii) transferring the asset to another organ of state at market related value or, when appropriate, free of charge;

(iii) selling the asset; or

(iv) destroying the asset.

(b) provided that –

(i) immovable property may be sold only at market related prices except when the public interest or the plight of

the poor demands otherwise;

(ii) movable assets are sold either by way of written price quotations, a competitive bidding process, auction or at

market related prices, whichever is the most advantageous;

(iii) in the case of the free disposal of computer equipment, the provincial department of education is first

approached to indicate within 30 days whether any of the local schools are interested in the equipment.


(iv) in the case of the disposal of firearms, the National Conventional Arms Control Committee has approved any

sale or donation of firearms to any person or institution within or outside the Republic;

(c) furthermore ensure that –

(i) immovable property is let at market related rates except when the public interest or the plight of the poor

demands otherwise; and

(ii) all fees, charges, rates, tariffs, scales of fees or other charges relating to the letting of immovable property are

annually reviewed; and

(d) ensure that where assets are traded in for other assets, the highest possible trade-in price is negotiated.

Risk management

41. (1) The accounting officer must establish an effective system of risk management for the identification, consideration and avoidance of

potential risks in the supply chain management system.

(2) Risk management must include –

(a) the identification of risks on a case-by-case basis;

(b) the allocation of risks to the party best suited to manage such risks;

(c) acceptance of the cost of the risk where the cost of transferring the risk is greater than that of retaining it;

(d) the management of risks in a pro-active manner and the provision of adequate cover for residual risks; and

(e) the assignment of relative risks to the contracting parties through clear and unambiguous contract documentation.

Performance management

42. The accounting officer must establish and implement an internal monitoring system in order to determine, on the basis of a retrospective

analysis, whether the authorised supply chain management processes were followed and whether the objectives of this Policy were achieved.

Part 4: Other matters

Prohibition on awards to persons whose tax matters are not in order

43. (1) The accounting officer must ensure that irrespective of the procurement process followed, no award above R30 000 is given to a

person whose tax matters have not been declared by the South African Revenue Service to be in order.

(2) Before making an award to a person the accounting officer must first check with SARS whether that person’s tax matters are in

order.

(3) If SARS does not respond within 7 days such person’s tax matters may for purposes of subparagraph (1) be presumed to be in order.

Prohibition on awards to persons in the service of the state

44. The accounting officer must ensure Irrespective of the procurement process followed, no award may be given to a person –

(a) who is in the service of the state;

(b) if that person is not a natural person, of which any director, manager, principal shareholder or stakeholder is a person in the service

of the state; or

(c) a person who is an advisor or consultant contracted with the municipality or municipal entity.


Awards to close family members of persons in the service of the state

45. The notes to the annual financial statements disclose particulars of any award of more than R2000 to a person who is a spouse, child or parent

of a person in the service of the state, or has been in the service of the state in the previous twelve months, including –

(a) the name of that person;

(b) the capacity in which that person is in the service of the state; and

(c) the amount of the award.

Ethical standards

46. (1) A code of ethical standards is hereby established, in accordance with sub paragraph (2), for officials and other role players in the

supply chain management system in order to promote –

(a) mutual trust and respect; and

(b) an environment where business can be conducted with integrity and in a fair and reasonable manner.

(2) An official or other role player involved in the implementation of the Supply Chain Management Policy –

(a) must treat all providers and potential providers equitably;

(b) may not use his or her position for private gain or to improperly benefit another person;

(c) may not accept any reward, gift, favour, hospitality or other benefit directly or indirectly, including to any close family

member, partner or associate of that person, of a value more than R350;

(d) notwithstanding subparagraph (2) (c), must declare to the accounting officer details of any reward, gift, favour, hospitality

or other benefit promised, offered or granted to that person or to any close family member, partner or associate of that

person;

(e) must declare to the accounting officer details of any private or business interest which that person, or any close family

member, partner or associate, may have in any proposed procurement or disposal process of, or in any award of a contract

by, the municipality or municipal entity

;

(f) must immediately withdraw from participating in any manner whatsoever in a procurement or disposal process or in the

award of a contract in which that person, or any close family member, partner or associate, has any private or business

interest;

(g) must be scrupulous in his or her use of property belonging to municipality or municipal entity;

(h) must assist the accounting officer in combating fraud, corruption, favoritism and unfair and irregular practices in the

supply chain management system; and

(i) must report to the accounting officer any alleged irregular conduct in the supply chain management system which that

person may become aware of, including –

(i) any alleged fraud, corruption, favoritism or unfair conduct;

(ii) any alleged contravention of paragraph 47(1) of this Policy; or

(iii) any alleged breach of this code of ethical standards.

(3) Declarations in terms of subparagraphs (2)(d) and (e) -


(a) must be recorded in a register which the accounting officer must keep for this purpose;

(b) by the accounting officer must be made to the mayor of the municipality who must ensure that such declarations are

recorded in the register.

(4) The National Treasury’s code of conduct must also be taken into account by supply chain management practitioners and other role

players involved in supply chain management.

(5) A breach of the code of conduct adopted by the municipality must be dealt with n accordance with schedule 2 of the Municipal

Systems Act.

Inducements, rewards, gifts and favours to [municipalities / municipal entities], officials and other role players

47. (1) No person who is a provider or prospective provider of goods or services, or a recipient or prospective recipient of goods disposed

or to be disposed of may either directly or through a representative or intermediary promise, offer or grant –

(a) any inducement or reward to the municipality or municipal entity for or in connection with the award of a contract; or

(b) any reward, gift, favour or hospitality to –

(i) any official; or

(ii) any other role player involved in the implementation of the supply chain management policy.

(2) The accounting officer must promptly report any alleged contravention of subparagraph (1) to the National Treasury for considering

whether the offending person, and any representative or intermediary through which such person is alleged to have acted, should be

listed in the National Treasury’s database of persons prohibited from doing business with the public sector.

(3) Subparagraph (1) does not apply to gifts less than R350 in value.

Sponsorships

48. The accounting officer must promptly disclose to the National Treasury and the relevant provincial treasury any sponsorship promised, offered

or granted, whether directly or through a representative or intermediary, by any person who is –

(a) a provider or prospective provider of goods or services; or

(b) a recipient or prospective recipient of goods disposed or to be disposed.

Objections and complaints

49. Persons aggrieved by decisions or actions taken in the implementation of this supply chain management system, may lodge within 14 days of

the decision or action, a written objection or complaint against the decision or action.

Resolution of disputes, objections, complaints and queries

50. (1) The accounting officer must appoint an independent and impartial person, not directly involved in the supply chain management

processes –

(a) to assist in the resolution of disputes between the municipality and other persons regarding -

(i) any decisions or actions taken in the implementation of the supply chain management system; or

(ii) any matter arising from a contract awarded in the course of the supply chain management system; or


(b) to deal with objections, complaints or queries regarding any such decisions or actions or any matters arising from such

contract.

(2) The accounting officer, or another official designated by the accounting officer, is responsible for assisting the appointed person to

perform his or her functions effectively.

(3) The person appointed must –

(a) strive to resolve promptly all disputes, objections, complaints or queries received; and

(b) submit monthly reports to the accounting officer on all disputes, objections, complaints or queries received, attended to or

resolved.

(4) A dispute, objection, complaint or query may be referred to the relevant provincial treasury if –

(a) the dispute, objection, complaint or query is not resolved within 60 days; or

(b) no response is forthcoming within 60 days.

(5) If the provincial treasury does not or cannot resolve the matter, the dispute, objection, complaint or query may be referred to the

National Treasury for resolution.

(6) This paragraph must not be read as affecting a person’s rights to approach a court at any time.

Contracts providing for compensation based on turnover

51. If a service provider acts on behalf of a municipality to provide any service or act as a collector of fees, service charges or taxes and the

compensation payable to the service provider is fixed as an agreed percentage of turnover for the service or the amount collected, the contract

between the service provider and the municipality must stipulate –

(a) a cap on the compensation payable to the service provider; and

(b) that such compensation must be performance based.

Commencement

52. This Policy takes effect on the date on which it is adopted by the council.