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Tender procedures In South Africa

The Following is word noting with restpect to tenders in South Africa:

1. All advertised tenders/bids indicate;
•where interested parties may collect documents required for their applications,
•where and when briefings will be held (when applicable),
•where completed forms and proposals may be delivered.

2.The advert also indicates a strict closing date and time for submissions – no late bids are accepted.

3.Submitted tenders/bids must be accompanied by :
•a comprehensive proposal addressing requirements as specified within the bid document
•all associated forms (SBDs) attached to the bid documentation; and
•a valid tax clearance certificate issued by the South African Revenue Service (SARS).

Every bid request has associated forms which must accompany submitted bid proposals. These ‘bid documents’ have the prefix SBD:
•SBD 1 – Invitation to bid
– requires that applicants agree to be bound by bid’s terms and conditions.

• SBD 2 – Tax clearance certificate requirements
– contains an ‘Application for tax clearance certificate’ form, which applicants should complete and hand it in to SARS to obtain a tax clearance certificate. The original tax clearance certificate obtained from SARS must accompany the submitted bid application.

•SBD 3.1 or 3.2 or 3.3 – Pricing schedule
– requires a summary of the applicant’s price and motivation. Applicants should motivate their price offer by describing the product/service to be supplied and the experience of the person(s) who will perform the service.   [NB: a separate, detailed proposal document can also accompany submitted bid if it is required in the bid specifications.]

•SBD 4 – Declaration of interest
– requires a Declaration of Interest from applicants, stating any existing relationship /acquaintance with DoC employees. This is to ensure that these persons are not involved in any way, to avoid corruption.

•SBD 5 [not always applicable] – National Industrial Participation (NIP) Programme
– refers to Industrial Participation Programme, i.e. contracts with imported content of US$ 10 million or higher have an industrial participation (IP) obligation, which must be addressed in the bid.

•SBD 6.1 – Preference points claim form
– requires Preferential Procurement Points claims.
•SBD 6.2 – Declaration certificate for local production and content for designated sectors
– requires declaration of bidder’s local content

•SBD 7.1 or 7.2 or 7.3 – Contract form
– represents a contract form that binds the parties should their bid be successful. There is a different form for purchases (7.1), services (7.2), and sales (7.3).

•SBD 8 – Declaration of bidder’s past supply chain management practices
– requires declaration of bidder’s past supply chain management practices.
•SBD 9 – Certificate of independent bid determination
– requires declaration from bidder to prevent bid-rigging

•General conditions of contract
– draws attention to general conditions applicable to government bids, contracts and orders and ensures clients are familiar with rights and obligations of all parties involved.
How tenders/bids are awarded

•Proposals will be evaluated on functionality and further in terms of the 80/20 or 90/10 preference points system, where 80/90 points will be for price only and the 20/10 points for BBBEE Level of Contribution. A bid will be not advance to the second phase if it fails to meet the benchmark percentage for functionality.
•Prices of submitted bids are comparatively rated and awarded pricing points;
•Preference points are calculated after prices have been brought to a comparative basis;
•Points scored are rounded off to 2 decimal places;
•The bidder obtaining the highest number of points is awarded the contract;
•In the event of equal points being scored, the bid will be awarded to the bidder scoring the highest number of points for specified goals.
If you are unsure about the procurement or application process for a particular bid, please contact the contact person listed on the bid document.

This article was first written on the gcis.gov.za website

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