Development of environmental management framework and activity exclusion standard for thabo mofutsanyana district municipality

The National Industrial Participation (NIP) Programme, which is applicable to all government

procurement contracts that have an imported content, became effective on the 1 September

1996. The NIP policy and guidelines were fully endorsed by Cabinet on 30 April 1997. In

terms of the Cabinet decision, all state and parastatal purchases / lease contracts (for goods,

works and services) entered into after this date, are subject to the NIP requirements. NIP is

obligatory and therefore must be complied with. The Industrial Participation Secretariat (IPS) of

the Department of Trade and Industry (DTI) is charged with the responsibility of administering

the programme.

1 PILLARS OF THE PROGRAMME

1.1 The NIP obligation is benchmarked on the imported content of the contract. Any

contract having an imported content equal to or exceeding US$ 10 million or other

currency equivalent to US$ 10 million will have a NIP obligation. This threshold of

US$ 10 million can be reached as follows:

(a) Any single contract with imported content exceeding US$10 million.

or

(b) Multiple contracts for the same goods, works or services each with imported

content exceeding US$3 million awarded to one seller over a 2 year period

which in total exceeds US$10 million.

or

(c) A contract with a renewable option clause, where should the option be

exercised the total value of the imported content will exceed US$10 million.

or

(d) Multiple suppliers of the same goods, works or services under the same

contract, where the value of the imported content of each allocation is equal to

or exceeds US$ 3 million worth of goods, works or services to the same

government institution, which in total over a two (2) year period exceeds

US$10 million.

1.2 The NIP obligation applicable to suppliers in respect of sub-paragraphs 1.1 (a) to 1.1 (c)

above will amount to 30 % of the imported content whilst suppliers in respect of

paragraph 1.1 (d) shall incur 30% of the total NIP obligation on a pro-rata basis.

1.3 To satisfy the NIP obligation, the DTI would negotiate and conclude agreements such as

investments, joint ventures, sub-contracting, licensee production, export promotion,

sourcing arrangements and research and development (R&D) with partners or suppliers.

of 74

5/2/2/1 DLRRD 0029(2025/2026)

1.4 A period of seven years has been identified as the time frame within which to

discharge the obligation.

2 REQUIREMENTS OF THE DEPARTMENT OF TRADE AND INDUSTRY

2.1 In order to ensure effective implementation of the programme, successful

bidders (contractors) are required to, immediately after the award of a contract

that is in excess of R10 million (ten million Rands), submit details of such a

contract to the DTI for reporting purposes.

2.2 The purpose for reporting details of contracts in excess of the amount of R10

million (ten million Rands) is to cater for multiple contracts for the same goods,

works or services; renewable contracts and multiple suppliers for the same

goods, works or services under the same contract as provided for in paragraphs

1.1.(b) to 1.1. (d) above.

3 BID SUBMISSION AND CONTRACT REPORTING REQUIREMENTS OF

BIDDERS AND SUCCESSFUL BIDDERS (CONTRACTORS)

3.1 Bidders are required to sign and submit this Standard Bidding Document (SBD 5)

together with the bid on the closing date and time.

3.2 In order to accommodate multiple contracts for the same goods, works or

services; renewable contracts and multiple suppliers for the same goods, works

or services under the same contract as indicated in sub-paragraphs 1.1 (b) to 1.1

(d) above and to enable the DTI in determining the NIP obligation, successful

bidders (contractors) are required, immediately after being officially notified about

any successful bid with a value in excess of R10 million (ten million Rands), to

contact and furnish the DTI with the following information:

• Bid / contract number.

• Description of the goods, works or services.

• Date on which the contract was accepted.

• Name, address and contact details of the government institution.

• Value of the contract.

• Imported content of the contract, if possible.

3.3 The information required in paragraph 3.2 above must be sent to the Department

of Trade and Industry, Private Bag X 84, Pretoria, 0001 for the attention of Mr

Elias Malapane within five (5) working days after award of the contract. Mr

Malapane may be contacted on telephone (012) 394 1401, facsimile (012) 394

2401 or e-mail at [email protected] for further details about the programme.

4 PROCESS TO SATISFY THE NIP OBLIGATION

4.1 Once the successful bidder (contractor) has made contact with and furnished the

DTI with the information required, the following steps will be followed:

a. the contractor and the DTI will determine the NIP obligation;

b. the contractor and the DTI will sign the NIP obligation agreement;

of 74

5/2/2/1 DLRRD 0029(2025/2026)

c. the contractor will submit a performance guarantee to the DTI;

d. the contractor will submit a business concept for consideration and approval by

the DTI;

e. upon approval of the business concept by the DTI, the contractor will submit

detailed business plans outlining the business concepts;

f. the contractor will implement the business plans; and

g. the contractor will submit bi-annual progress reports on approved plans to the

DTI.

4.2 The NIP obligation agreement is between the DTI and the successful bidder (contractor)

and, therefore, does not involve the purchasing institution.

Bid number ......................................... Closing date:....................................

Name of bidder................................................................................................

Postal address ................................................................................................

................................................................................................

Signature............................................ Name (in print)...................................

Date..................................................

Js475wc

of 74

5/2/2/1 DLRRD 0029(2025/2026)

SBD 6.1

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL

PROCUREMENT REGULATIONS 2022

BID PROCESS (EQUAL OR BELOW R50 MILLION)

This preference form must form part of all tenders invited. It contains general information

and serves as a claim form for preference points for specific goals.

NB: BEFORE COMPLETING THIS FORM, TENDERERS MUST STUDY THE

GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN

RESPECT OF THE TENDER AND PREFERENTIAL PROCUREMENT

REGULATIONS, 2022

1. DEFINITIONS

(a) “tender” means a written offer in the form determined by an organ of state in

response to an invitation to provide goods or services through price quotations,

competitive tendering process or any other method envisaged in legislation;

(b) “price” means an amount of money tendered for goods or services, and

includes all applicable taxes less all unconditional discounts;

(c) “rand value” means the total estimated value of a contract in Rand, calculated

at the time of tender invitation, and includes all applicable taxes;

(d) “tender for income-generating contracts” means a written offer in the form

determined by an organ of state in response to an invitation for the origination

of income-generating contracts through any method envisaged in legislation

that will result in a legal agreement between the organ of state and a third party

that produces revenue for the organ of state, and includes, but is not limited to,

leasing and disposal of assets and concession contracts, excluding direct sales

and disposal of assets through public auctions;

(e) “the Act” means the Preferential Procurement Policy Framework Act, 2000

(Act No. ); and

(f) "Historically Disadvantaged individuals" means a person historically

disadvantaged by unfair discrimination on the basis of race: Provided that a

person historically disadvantaged on the basis of race refers to Africans,

Coloureds, Indians and people of Chinese descent who are South African

citizens by birth or descent; or who became citizens of the Republic of South

Africa by Naturalisation -

• Before 27 April 1994; or

• On or after 27 April 1994 and who would have been entitled to acquire

citizenship by naturalization prior to that date.

of 7

of 74

5/2/2/1 DLRRD 0029(2025/2026)

2. GENERAL CONDITIONS

2.1 The following preference point systems are applicable to invitations to tender:

- the 80/20 system for requirements with a Rand value of up to R50 000 000 (all

applicable taxes included); and

2.2 To be completed by the organ of state

a) The applicable preference point system for this tender is the 80/20 preference point

system.

b) 80/20 preference point system will be applicable in this tender. The lowest/ highest

acceptable tender will be used to determine the accurate system once tenders are

received.

2.3 Points for this tender (even in the case of a tender for income-generating contracts)

shall be awarded for:

(a) Price; and

(b) Specific Goals.

2.4 To be completed by the organ of state:

The maximum points for this tender are allocated as follows:

POINTS

PRICE 80

SPECIFIC GOALS 20

Total points for Price and SPECIFIC GOALS 100

2.5 Failure on the part of a tenderer to submit proof or documentation required in terms of

this tender to claim points for specific goals with the tender, will be interpreted to mean

that preference points for specific goals are not claimed.

2.6 Tenderers that fail to claim points for specific goals or that fail to fully complete the

table in paragraph 2.12 below, will not be awarded points for specific goals.

2.7 Tenderers that make a calculation error when claiming points as per the table in

paragraph 2.12 below, will not be awarded points for specific goals. Please take note

of the examples on how to calculate points for specific goals as per paragraph 2.12

below.

2.8 Tenderers that fail to submit the correct SBD 6.1 form as issued by the Department of

Agriculture, Land Reform and Rural Development, will not be awarded points for

specific goals.

2.9 The organ of state reserves the right to require of a tenderer, either before a tender is

adjudicated or at any time subsequently, to substantiate any claim in regard to

preferences, in any manner required by the organ of state.

of 7

of 74

5/2/2/1 DLRRD 0029(2025/2026)

2.10 Tenderers who wish to claim points in terms of the table in paragraph 2.12 below need

to provide proof for each point claimed as guided below:

2.10.1 Historically Disadvantaged individuals (HDI):

• Attach a copy of Identity Document (ID) and company registration

document.

2.10.2 Who is female:

• Attach a copy of Identity Document (ID) and company registration

document.

2.10.3 Who has a disability:

• Attach a certified copy or original doctor’s letter confirming the disability.

2.10.4 Who is youth (a person that is not older than 35 years on the closing date of a bid):

• Attach a copy of Identity Document (ID) and company registration

document.

2.11 The Department will use the Central Supplier Database and documents submitted by

the tenderer to verify the points claimed for specific goals.

2.12 Specific goals for the tender and points claimed are indicated per the table

below.

(Note to organs of state: Where either the 90/10 or 80/20 preference point system

is applicable, corresponding points must also be indicated as such.

Note to tenderers: The tenderer must indicate how they claim points for each

preference point system.)

Number of Percentage Number of

points ownership points claimed

equity (80/20 system) The specific goals allocated points in allocated

terms of this tender (80/20 (To be (To be

completed by completed by system)

the tenderer) the tenderer)

A person historically disadvantages by unfair

discrimination on the basis of race: provided

that a person historically disadvantaged on

the basis of race refers to Africans,

Coloureds, Indians and people of Chinese

descent who are South African citizen by

8 birth or descent; who become citizen of the

Republic of South Africa by Naturalisation-

a) Before 27 April 1994

I. On or before 27 April 1994 and who

would been entitled to acquire

of 7

of 74

5/2/2/1 DLRRD 0029(2025/2026)

citizenship by naturalisation prior to the

date.

II. Who is female 5

III. Who has a disability 2

IV. Specific goal: Who is youth 2

V. Specific goal: Promotion of enterprises

located in South Africa

The number of points claimed for specific goals, are calculated as follow:

(I) A maximum of 8 points may be allocated to tenderers who had no franchise in

national elections before the 1983 and 1993 Constitution, on the following

basis:

• Percentage ownership equity x 8 ÷ 100 = number of points claimed.

(II) A maximum of 5 points may be allocated for to tenderers who is female, on the

following basis:

• Percentage ownership equity x 5 ÷ 100 = number of points claimed.

(III) A maximum of 2 points may be allocated to tenderers who has a disability, on

the following basis:

• Percentage ownership equity x 2 ÷ 100 = number of points claimed.

(IV) A maximum of 2 points may be allocated to tenderers who are youth, on the

following basis:

• Percentage ownership equity x 2 ÷ 100 = number of points claimed.

(V) A maximum of 3 points may be allocated to tenderers for locality, on the

following basis:

• Percentage ownership equity x 3 ÷ 100 = number of points claimed.

2.13 It is important to note that failure by a tenderer to complete the table in paragraph

2.12 in full, will result in points for specific goals not to be allocated.

3. FORMULAE FOR PROCUREMENT OF GOODS AND SERVICES

3.1. POINTS AWARDED FOR PRICE

3.1.1 THE 80/20 PREFERENCE POINT SYSTEMS

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

of 7

of 74

5/2/2/1 DLRRD 0029(2025/2026)

80/20

Pt−Pmin

Ps= 80(1− )

Pmin

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmin = Price of lowest acceptable tender

3.2. FORMULAE FOR DISPOSAL OR LEASING OF STATE ASSETS AND INCOME

GENERATING PROCUREMENT

3.2.1. POINTS AWARDED FOR PRICE

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

80/20

Pt−Pmax

Ps= 80(1+ )

Pmax

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmax = Price of highest acceptable tender

4. POINTS AWARDED FOR SPECIFIC GOALS

4.1. In terms of Regulation 4(2); 5(2); 6(2) and 7(2) of the Preferential Procurement

Regulations, preference points must be awarded for specific goals stated in the tender.

For the purposes of this tender the tenderer will be allocated points based on the goals

stated in the table in paragraph 2.12 above as may be supported by proof/

documentation stated in the conditions of this tender.

4.2. In cases where organs of state intend to use Regulation 3(2) of the Regulations, which

states that, if it is unclear whether the 80/20 or 90/10 preference point system applies,

an organ of state must, in the tender documents, stipulate in the case of—

(a) an invitation for tender for income-generating contracts, that either the 80/20 or

90/10 preference point system will apply and that the highest acceptable tender

will be used to determine the applicable preference point system; or

(b) any other invitation for tender, that either the 80/20 or 90/10 preference point

system will apply and that the lowest acceptable tender will be used to

determine the applicable preference point system,

then the organ of state must indicate the points allocated for specific goals for both the

90/10 and 80/20 preference point system.

4.3 A consortium or joint venture may, based on the percentage of the contract value

of 7

of 74

5/2/2/1 DLRRD 0029(2025/2026)

managed or executed by their members, be entitled to claim points in respect of

specific contract participation goals.

4.4 A tenderer will not be awarded points for HDI if it is indicated in the tender documents

that such a tenderer intends sub-contracting more than 25% of the value of the contract

to any other enterprise that does not qualify for the same number or more points for

equity ownership.

4.5 A tenderer awarded a contract as a result of preference for contracting with, or

providing equity ownership to a HDI, may not subcontract more than 25% of the value

of the contract to a tenderer who is not a HDI or does not qualify for the same number

or more preference for equity ownership.

5. SUB-CONTRACTING

5.1 Will any portion of the contract be sub-contracted?

(Tick applicable box)

YES NO

5.1.1 If yes, indicate:

i) What percentage of the contract will be subcontracted: ...............................%

ii) The name of the sub-contractor: ...............................................................

iii) Points claimed for HDI by the sub-contractor: ....................................................

6. DECLARATION WITH REGARD TO COMPANY/FIRM

6.1. Name of company/firm: .................................................................................

6.2. Company registration number: ........................................................................

6.3. TYPE OF COMPANY/ FIRM

 Partnership/Joint Venture / Consortium

 One-person business/sole propriety

 Close corporation

 Public Company

 Personal Liability Company

 (Pty) Limited

 Non-Profit Company

 State Owned Company

[TICK APPLICABLE BOX]

6.4. I, the undersigned, who is duly authorised to do so on behalf of the company/firm,

certify that the points claimed, based on the specific goals as advised in the tender,

qualifies the company/ firm for the preference(s) shown and I 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;

of 7

of 74

No specific requirements found