Supply and delivery of diesel on ad-hoc basis for council for medical schemes (3-Year contract)

Closing date: 09 June 2026 at 11:59 pm. No briefing session or site visit dates are specified.

Primary contact: Dr T. Mabeba, email: [email protected], phone: 012 431 0484. Technical enquiries: Ludwe Madayi, email: [email protected], phone: 012 431 0484. Additional technical contact: Bohlale Marule, email: [email protected], phone: 012 431 0448. Submission address: As per SBD1 instructions. CMS general contact: Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157. Tel: 012 431 0500, Fax: 012 430 7644, Customer Care: 0861 123 267, email: [email protected].

Submit proposals to the address and instructions in SBD1 of the RFQ document by the closing date and time. Late submissions will not be accepted. Bidders must register on the Central Supplier Database (CSD) and include their CSD number on SBD1. Documents submitted via cloud solutions (e.g., WeTransfer, Google Drive, Dropbox) will not be considered. Required returnable documents: SBD 1, SBD 4, and SBD 6.1 (fully completed and signed). Failure to submit these may lead to automatic disqualification. All bids must be submitted on official forms provided—do not re-type.

Evaluation is a two-phase process:

Phase 1: Mandatory Criteria (Pass/Fail)

• Bidders must submit two (2) reference letters (issued within the past 5 years) from different clients, on official letterhead, signed, with contact details, and clearly indicating the nature and scope of diesel/petrol supply services.
• Valid Petroleum Wholesale Licence and/or Manufacturing Licence issued by DMRE, with proof of validity.
• Valid Letter of Good Standing under COIDA, relevant to the scope of work. If the nature of business does not match, submit an affidavit to DoEL or your insurer and proof of acceptance.
• Proof of at least two vehicles/trailers/bowsers licensed to carry fuel, including copies of vehicle registration and roadworthy certificates with all legally required safety equipment.

Bidders failing Phase 1 are disqualified and will not proceed to Phase 2.

Phase 2: Price (80 points) and Specific Goals (20 points)

• Price: Detailed budget breakdown required. Lowest price scores highest.
• Specific Goals (20 points total):

• Historically Disadvantaged Individuals (HDI) Ownership: 80%-100% Black Owned (5), 50%-79.99% (4), 20%-49.99% (3), 1%-19.99% (1), Below 1% (0).

• Size of Company: EME (3), QSE (2), Generic Enterprise (1).

• Black Woman-Owned Enterprise: 75%-100% (5), 51%-74.99% (3), 1%-50.99% (1), Below 1% (0).

• Ownership by People with Disabilities: 75%-100% (3), 51%-74.99% (2), 1%-50.99% (1), Below 1% (0).

• Ownership by Youth (under 35): 75%-100% (4), 51%-74.99% (3), 20%-50.99% (2), 1%-19.99% (1), Below 1% (0).

To claim Specific Goals points, submit:

• Certified copies of SA IDs of Directors/Owners/Shareholders (HDI).
• Valid B-BBEE Certificate or Sworn Affidavit (company size).
• Medical certificate or accredited health professional letter (disability ownership).
• B-BBEE Certificate/sworn affidavit, certified ID copies, and CIPC document (Black Woman-Owned).
• B-BBEE Certificate/sworn affidavit, certified ID copies, and CIPC document (Youth-Owned).
• Fully completed and signed SBD 6.1.

Preference points are awarded using the 80/20 Preference Points System as per PPPFA Regulations.

Supply and deliver diesel on an ad-hoc basis for a 3-year period. Requirements:

• Supply 1x Diesel Tank (1000 Litre capacity).
• Deliver fuel to CMS offices as and when required.
• Standard delivery: Within 24 hours after order placement.
• Emergency delivery: Within 6 hours (for extended power outages).
• Provide an after-hours accessible emergency contact number.
• Comply with Emergency Management Standards for Health & Safety, Security, and Environment:

• Fire extinguisher on delivery vehicles/equipment.

• Spillage kit available.

• Cleaning of any spillage.

• Vehicles/trailers/bowsers must be licensed to carry fuel and equipped with all legally required safety equipment.

Pricing must be submitted in South African Rand (ZAR), inclusive of VAT. Requirements:

• Clearly indicate all price components and cost elements for diesel supply and delivery.
• Identify any price elements subject to escalation, adjustment, or exchange rate fluctuations during the contract period.
• State any assumptions, exclusions, or limitations affecting the quoted price.
• Prices must remain valid for the period specified in the bid documentation.
• Payment terms: CMS will pay in full within 30 days after receipt of an original tax invoice. Invoices must be emailed to [email protected] and include the Purchase Order number. No goods/services shall be delivered without an official Purchase Order from CMS’s Supply Chain Management Unit.
• Performance security: Within 30 days of contract award notification, the successful bidder must furnish performance security (amount specified in Special Conditions of Contract). Acceptable forms: bank guarantee, irrevocable letter of credit, or cashier’s/certified cheque.

Mandatory compliance documents:

• SARS PIN Document.
• National Treasury Central Supplier Database (CSD) Report.
• Valid B-BBEE Certificate or Sworn Affidavit (for EMEs and QSEs).
• Completed and signed SBD 1, SBD 4, and SBD 6.1 forms. Failure to submit these may lead to automatic disqualification.
• Tax Compliance: Bidders must be tax compliant. Non-compliant bidders will be notified and given 7 working days to submit proof of compliance or arrangements to meet obligations. Failure to comply results in bid rejection.
• Valid Petroleum Wholesale Licence and/or Manufacturing Licence from DMRE.
• Valid Letter of Good Standing under COIDA, relevant to the scope of work.
• Proof of vehicle registration and roadworthy certificates for at least two fuel-carrying vehicles/trailers/bowsers.
• Bidders listed on the National Treasury’s database of restricted bidders or tender defaulters will be disqualified.
• No bids will be accepted from persons in the service of the state, or companies/close corporations with directors/members in the service of the state.
• Foreign suppliers: Must answer questionnaire regarding RSA residency, branch, permanent establishment, income source, or tax liability. If all answers are 'No', no SARS TCS PIN is required.

The Council for Medical Schemes is a statutory body established by the Medical Schemes Act () to provide regulatory

supervision of private health financing through medical schemes; and functions as a Schedule 3A Public Entity.

• Controlling and co-ordinating the functioning and governance of all entities conducting the business of medical

schemes in a manner that is complementary to national health policy

• Investigating complaints and settling disputes in relation to the affairs of medical schemes
• Collecting, disseminating information, and collaborating with stakeholders about private health care
• Making recommendations and advising the Minister on the criteria for the measurement of quality and outcomes of

health services provided by medical schemes, and related matters

2. Scope of work

2.1. Council for Medical Scheme hereby invite experienced and reputable bidders to submit quotations for the following for the

supply and delivery of diesel on an ad-hoc basis for three (3) year periods as per the following specifications:

• 1x Diesel Tank 1000 Litre Tank
• Must deliver fuel to CMS offices as and when the fuel is required
• Supplier must deliver within 24 Hours after the order has been placed
• Must deliver within six hours on an emergency (required due to extended power outages),
• Must have an after-hours accessible emergency number
• Must comply with EMERGENCY MANAGEMENT STANDARDS – Health & Safety, Security and Environment, i.e.:

➢ Fire extinguisher

➢ Spillage kit

➢ Cleaning of spillage

2.2 Pricing Requirements

The bidder shall submit pricing in South African Rand (ZAR), inclusive of Value Added Tax (VAT). The pricing submission must:

• Clearly indicate all price components and cost elements applicable to the delivery and supply of diesel.
• Identify any price elements that are subject to escalation, adjustment, or exchange rate fluctuations during the contract

period.

• State any assumptions, exclusions, or limitations that may affect the quoted price; and
• Remain valid for the period specified in the bid documentation.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

submitted prior to appointment.

4. Copy of vehicle Bidder must submit proof (Copy of vehicle registration and roadworthy certificate) of at

registration and roadworthy least two vehicles and/or trailers/bowsers licensed to carry fuel with all safety equipment

certificate required by law.

3.3. Price and Specific Goal

3.3.1. To facilitate a transparent selection process that allows an equal opportunity to all bidders, Council for Medical Schemes

has a Supply Chain Management policy that will be adhered to. Quotations will be evaluated in terms of the prevailing

I CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 1, 2 and 3 ABOVE IS CORRECT.

3.1. Unless otherwise indicated in the bidding documents, the purchaser shall not be liable for any expense incurred in the

preparation and submission of a bid. Where applicable, a non-refundable fee for documents may be charged.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

3.2. With certain exceptions, invitations to bid are only published in the Government Tender Bulletin. The Government Tender

Bulletin may be obtained directly from the Government Printer, Private Bag X85, Pretoria 0001, or accessed electronically

from www.treasury.gov.za

10.1. Delivery of the goods shall be made by the supplier in accordance with the terms specified in the contract. The details of

shipping and/or other documents to be furnished by the supplier are specified in SCC.

10.2. Documents to be submitted by the supplier are specified in SCC.

24.1. When, after the date of bid, provisional payments are required, or antidumping or countervailing duties are imposed,

or the amount of a provisional payment or anti-dumping or countervailing right is increased in respect of any

dumped or subsidized import, the State is not liable for any amount so required or imposed, or for the amount of

any such increase. When, after the said date, such a provisional payment is no longer required or any such anti-

dumping or countervailing right is abolished, or where the amount of such provisional payment or any such right is

reduced, any such favourable difference shall on demand be paid forthwith by the contractor to the State or the

State may deduct such amounts from moneys (if any) which may otherwise be due to the contractor in regard to

supplies or services which he delivered or rendered, or is to deliver or render in terms of the contract or any other

contract or any other amount which may be due to him

31.1. Every written acceptance of a bid shall be posted to the supplier concerned by registered or certified mail and any

other notice to him shall be posted by ordinary mail to the address furnished in his bid or to the address notified later

by him in writing and such posting shall be deemed to be proper service of such notice.

31.2. The time mentioned in the contract documents for performing any act after such aforesaid notice has been given,

shall be reckoned from the date of posting of such notice.

16. Payment
17. Prices
18. Contract amendments
19. Assignment
20. Subcontracts
21. Delays in the supplier’s performance
22. Penalties
23. Termination for default

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

24. Dumping and countervailing duties

25. Force Majeure

26. Termination for insolvency

27. Settlement of disputes

28. Limitation of liability

29. Governing language

30. Applicable law

31. Notices

32.Taxes and duties

33. National Industrial Participation Programme (NIPP)
34. Prohibition of restrictive practices

General conditions of contract

1. Definitions

The following terms shall be interpreted as indicated:

1.1. “Closing time” means the date and hour specified in the bidding documents for the receipt of bids.

1.2. “Contract” means the written agreement entered into between the purchaser and the supplier, as recorded in the contract

form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference

therein.

1.3. “Contract price” means the price payable to the supplier under the contract for the full and proper performance of his

contractual obligations.

1.4. “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public

official in the procurement process or in contract execution.

1.5. "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its government and encouraged

to market its products internationally.

1.6. “Country of origin” means the place where the goods were mined, grown or produced or from which the services are

supplied. Goods are produced when, through manufacturing, processing or substantial and major assembly of components,

a commercially recognised new product results that is substantially different in basic characteristics or in purpose or utility

from its components.

1.7. “Day” means calendar day.

1.8. “Delivery” means delivery in compliance with the conditions of the contract or order.

1.9. “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10. “Delivery into consignee's store or to his site” means delivered and unloaded in the specified store or depot or on the

specified site in compliance with the conditions of the contract or order, the supplier bearing all risks and charges involved

until the supplies are so delivered and a valid receipt is obtained.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

1.11. "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at lower prices than that

of the country of origin and which have the potential to harm the local industries in the RSA.

1.12. ” Force majeure” means an event beyond the control of the supplier and not involving the supplier’s fault or negligence,

and not foreseeable. Such events may include, but are not restricted to, acts of the purchaser in its sovereign capacity, wars

or revolutions, fires, floods, epidemics, quarantine restrictions and freight embargoes.

1.13. “Fraudulent practice” means a misrepresentation of facts to influence a procurement process or the execution of a contract

to the detriment of any bidder and includes collusive practice among bidders (before or after bid submission) designed to

establish bid prices at artificial non-competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14. “GCC” means the General Conditions of Contract.

1.15. “Goods” means all of the equipment, machinery, and/or other materials that the supplier is required to supply to the

purchaser under the contract.

1.16. “Imported content” means that portion of the bidding price represented by the cost of components, parts or materials which

have been or are still to be imported (whether by the supplier or his subcontractors) and which costs are inclusive of the

costs abroad, plus freight and other direct importation costs such as landing costs, dock dues, import duty, sales duty or

other similar tax or duty at the South African place of entry as well as transportation and handling charges to the factory in

the Republic where the supplies covered by the bid will be manufactured.

1.17. “Local content” means that portion of the bidding price that is not included in the imported content, provided that local

manufacture takes place.

1.18. “Manufacture” means the production of products in a factory using labour, materials, components and machinery and

includes other related value-adding activities.

1.19. “Order” means an official written order issued for the supply of goods or works or the rendering of a service.

1.20. “Project site,” where applicable, means the place indicated in bidding documents.

1.21. “Purchaser” means the organisation purchasing the goods.

1.22. “Republic” means the Republic of South Africa.

1.23. “SCC” means the Special Conditions of Contract.

1.24. “Services” means that functional services ancillary to the supply of the goods, such as transportation and any other

incidental services, such as installation, commissioning, provision of technical assistance, training, catering, gardening,

security, maintenance and other such obligations of the supplier covered under the contract.

1.25. “Written” or “in writing” means handwritten in ink or any form of electronic or mechanical writing.

2. Application

2.1. These general conditions apply to all bids, contracts and orders, including bids for functional and professional services,

sales, hiring, letting and the granting or acquiring of rights, but excluding immovable property, unless otherwise indicated in

the bidding documents.

2.2. Where applicable, special conditions of contract are also laid down to cover specific supplies, services or works.

2.3. Where such special conditions of contract conflict with these general conditions, the special conditions shall apply.

3. General

3.1. Unless otherwise indicated in the bidding documents, the purchaser shall not be liable for any expense incurred in the

preparation and submission of a bid. Where applicable, a non-refundable fee for documents may be charged.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

3.2. With certain exceptions, invitations to bid are only published in the Government Tender Bulletin. The Government Tender

Bulletin may be obtained directly from the Government Printer, Private Bag X85, Pretoria 0001, or accessed electronically

from www.treasury.gov.za

4. Standards

4.1. The goods supplied shall conform to the standards mentioned in the bidding documents and specifications.

5. Use of contract documents and information; inspection.

5.1. The supplier shall not, without the purchaser’s prior written consent, disclose the contract, or any provision thereof, or any

specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the purchaser in connection

therewith, to any person other than a person employed by the supplier in the performance of the contract. Disclosure to

any such employed person shall be made in confidence and shall extend only so far as may be necessary for purposes of

such performance.

5.2. The supplier shall not, without the purchaser’s prior written consent, make use of any document or information mentioned

in GCC clause 5.1 except for purposes of performing the contract.

5.3. Any document, other than the contract itself, mentioned in GCC clause 5.1 shall remain the property of the purchaser and

shall be returned (all copies) to the purchaser on completion of the supplier’s performance under the contract if so required

by the purchaser.

5.4. The supplier shall permit the purchaser to inspect the supplier’s records relating to the performance of the supplier and to

have them audited by auditors appointed by the purchaser, if so, required by the purchaser.

6. Patent rights

6.1. The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark, or industrial

design rights arising from use of the goods or any part thereof by the purchaser.

7. Performance security

7.1. Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the purchaser

the performance security of the amount specified in SCC.

7.2. The proceeds of the performance security shall be payable to the purchaser as compensation for any loss resulting from

the supplier’s failure to complete his obligations under the contract.

7.3. The performance security shall be denominated in the currency of the contract, or in a freely convertible currency

acceptable to the purchaser and shall be in one of the following forms:

a) a bank guarantee or an irrevocable letter of credit issued by a reputable bank located in the purchaser’s country or

abroad, acceptable to the purchaser, in the form provided in the bidding documents or another form acceptable to the

purchaser; or

b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later than thirty (30) days

following the date of completion of the supplier’s performance obligations under the contract, including any warranty

obligations, unless otherwise specified in SCC.

8. Inspections, tests and analyses

8.1. All pre-bidding testing will be for the account of the bidder.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

8.2. If it is a bid condition that supplies to be produced or services to be rendered should at any stage during production or

execution or on completion, be subject to inspection, the premises of the bidder or contractor shall be open, at all reasonable

hours, for inspection by a representative of the Department or an organisation acting on behalf of the Department.

8.3. If there are no inspection requirements indicated in the bidding documents and no mention is made in the contract, but

during the contract period it is decided that inspections shall be carried out, the purchaser shall itself make the necessary

arrangements, including payment arrangements with the testing authority concerned.

8.4. If the inspections, tests and analyses referred to in clauses 8.2 and 8.3 show the supplies to be in accordance with the

contract requirements, the cost of the inspections, tests and analyses shall be defrayed by the purchaser.

8.5. Where the supplies or services referred to in clauses 8.2 and 8.3 do not comply with the contract requirements, irrespective

of whether such supplies or services are accepted or not, the cost in connection with these inspections, tests or analyses

shall be defrayed by the supplier.

8.6. Supplies and services which are referred to in clauses 8.2 and 8.3 and which do not comply with the contract requirements

may be rejected.

8.7. Any contract supplies may, on or after delivery, be inspected, tested or analysed and may be rejected if found not to comply

with the requirements of the contract. Such rejected supplies shall be held at the cost and risk of the supplier who shall,

when called upon, remove them immediately at his own cost and forthwith substitute them with supplies which do comply

with the requirements of the contract. Failing such removal, the rejected supplies shall be returned at the suppliers cost and

risk. Should the supplier fail to provide the substitute supplies forthwith, the purchaser may, without giving the supplier

further opportunity to substitute the rejected supplies, purchase such supplies as may be necessary at the expense of the

supplier.

8.8. The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the purchaser to cancel the contract on account of a

breach of the conditions thereof, or to act in terms of Clause 23 of GCC.

9. Packing

9.1. The supplier shall provide such packing of the goods as is required to prevent their damage or deterioration during transit

to their final destination, as indicated in the contract. The packing shall be sufficient to withstand, without limitation, rough

handling during transit and exposure to extreme temperatures, salt and precipitation during transit, and open storage.

Packing, case size and weights shall take into consideration, where appropriate, the remoteness of the goods’ final

destination and the absence of heavy handling facilities at all points in transit.

9.2. The packing, marking, and documentation within and outside the packages shall comply strictly with such special

requirements as shall be expressly provided for in the contract, including additional requirements, if any, specified in SCC,

and in any subsequent instructions ordered by the purchaser.

10. Delivery and documents

10.1. Delivery of the goods shall be made by the supplier in accordance with the terms specified in the contract. The details of

shipping and/or other documents to be furnished by the supplier are specified in SCC.

10.2. Documents to be submitted by the supplier are specified in SCC.

11. Insurance

11.1. The goods supplied under the contract shall be fully insured in a freely convertible currency against loss or damage

incidental to manufacture or acquisition, transportation, storage and delivery in the manner specified in the SCC.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

12. Transportation

12.1. Should a price other than an all-inclusive delivered price be required, this shall be specified in the SCC.

13. Incidental services

13.1. The supplier may be required to provide any or all of the following services, including additional services, if any, specified

in SCC:

a) performance or supervision of on-site assembly and/or commissioning of the supplied goods;

b) furnishing of tools required for assembly and/or maintenance of the supplied goods;

c) furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods;

d) performance or supervision or maintenance and/or repair of the supplied goods, for a period of time agreed by the

parties, provided that this service shall not relieve the supplier of any warranty obligations under this contract; and

e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly, start-up, operation,

maintenance, and/or repair of the supplied goods.

13.2. Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall be agreed

upon in advance by the parties and shall not exceed the prevailing rates charged to other parties by the supplier for

similar services.

14. Spare parts

14.1. As specified in SCC, the supplier may be required to provide any or all of the following materials, notifications, and

information about spare parts manufactured or distributed by the supplier:

a) such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall not relieve

the supplier of any warranty obligations under the contract; and

b) in the event of termination of production of the spare parts:

✓ advance notification to the purchaser of the pending termination, in sufficient time to permit the purchaser to

procure needed requirements; and

✓ following such termination, furnishing at no cost to the purchaser, the blueprints, drawings, and specifications of

the spare parts, if requested.

15.1. The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models,

and that they incorporate all recent improvements in design and materials unless provided otherwise in the contract.

The supplier further warrants that all goods supplied under this contract shall have no defect, arising from design,

materials, or workmanship (except when the purchaser’s specifications require the design and/or material) or from any

act or omission of the supplier, that may develop under normal use of the supplied goods in the conditions prevailing

in the country of final destination.

15.2. This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the case may be, have

been delivered to and accepted at the final destination indicated in the contract, or for eighteen (18) months after the

date of shipment from the port or place of loading in the source country, whichever period concludes earlier, unless

specified otherwise in SCC.

15.3. The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

15.4. Upon receipt of such notice, the supplier shall, within the period specified in SCC and with all reasonable speed, repair

or replace the defective goods or parts thereof, without costs to the purchaser.

15.5. If the supplier, having been notified, fails to remedy the defect(s) within the period specified in SCC, the purchaser may

proceed to take such remedial action as may be necessary, at the supplier’s risk and expense and without prejudice to

any other rights which the purchaser may have against the supplier under the contract.

16. Payment

16.1. The method and conditions of payment to be made to the supplier under this contract shall be specified in SCC.

16.2. The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note, upon fulfilment of

other obligations stipulated in the contract.

16.3. Payments shall be made promptly by the purchaser, but in no case later than thirty (30) days after submission of an

invoice or claim by the supplier.

16.4. Payment will be made in Rand unless otherwise stipulated in SCC.

17. Prices

17.1. Prices charged by the supplier for goods delivered and services performed under the contract shall not vary from the

prices quoted by the supplier in his bid, except any price adjustments authorized in SCC or in the purchaser’s request

for bid validity extension, as the case may be.

18. Contract amendments

18.1. No variation in or modification of the terms of the contract shall be made except by written amendment signed by the

parties concerned.

19. Assignment

19.1. The supplier shall not assign, in whole or in part, its obligations to perform under the contract, except with the

purchaser’s prior written consent.

20. Subcontracts

20.1. The supplier shall notify the purchaser in writing of all subcontracts awarded under this contract if not already specified

in the bid. Such notification, in the original bid or later, shall not relieve the supplier from any liability or obligation under

the contract.

21. Delays in the supplier’s performance

21.1. The supplier shall make delivery of the goods and performance of services in accordance with the schedule prescribed

by the purchaser in the contract.

21.2. If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions

impeding timely delivery of the goods and performance of services, the supplier shall promptly notify the purchaser in

writing of the fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier’s

notice, the purchaser shall evaluate the situation and may, at his discretion, extend the supplier’s time for performance,

with or without the imposition of penalties, in which case the extension shall be ratified by the parties by amendment of

the contract.

21.3. No provision in a contract shall be deemed to prohibit the obtaining of supplies or services from a national department,

provincial department, or local authority.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

21.4. The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if

an emergency arises, the supplier’s point of supply is not situated at or near the place where the supplies are required,

or the supplier’s services are not readily available.

21.5. Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations shall

render the supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is

agreed upon pursuant to GCC Clause 21.2 without the application of penalties.

21.6. Upon any delay beyond the delivery period in the case of a supplies contract, the purchaser shall, without cancelling

the contract, be entitled to purchase supplies of a similar quality and up to the same quantity in substitution of the goods

not supplied in conformity with the contract and to return any goods delivered later at the supplier’s expense and risk,

or to cancel the contract and buy such goods as may be required to complete the contract and without prejudice to his

other rights, be entitled to claim damages from the supplier.

22. Penalties

22.1. Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the

period(s) specified in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct

from the contract price, as a penalty, a sum calculated on the delivered price of the delayed goods or unperformed

services using the current prime interest rate calculated for each day of the delay until actual delivery or performance.

The purchaser may also consider termination of the contract pursuant to GCC Clause 23.

23. Termination for default

23.1. The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the

supplier, may terminate this contract in whole or in part:

a) if the supplier fails to deliver any or all the goods within the period(s) specified in the contract, or within any

extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

b) if the Supplier fails to perform any other obligation(s) under the contract; or

c) if the supplier, in the judgment of the purchaser, has engaged in corrupt or fraudulent practices in competing for or

in executing the contract.

23.2. In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and

in such manner as it deems appropriate, goods, works or services similar to those undelivered. The supplier shall be

liable to the purchaser for any excess costs for such similar goods, works or services. However, the supplier shall

continue performance of the contract to the extent not terminated.

23.3. Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction

penalty on the supplier by prohibiting such supplier from doing business with the public sector for a period not exceeding

10 years.

23.4. If a purchaser intends restricting a supplier or any person associated with the supplier, the supplier will be allowed a

time period of not more than fourteen (14) days to provide reasons why the envisaged restriction should not be imposed.

Should the supplier fail to respond within the stipulated fourteen (14) days, the purchaser may regard the intended

penalty as not objected to and may impose it on the supplier.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

23.5. Any restriction imposed on any person by the Accounting Officer / Authority will, at the discretion of the Accounting

Officer / Authority, also apply to any other enterprise or any partner, manager, director or other person who wholly or

partly exercises or exercised or may exercise control over the enterprise of the first-mentioned person, and with which

enterprise or person the first-mentioned person, is or was in the opinion of the Accounting Officer / Authority actively

associated.

23.6. If a restriction is imposed, the purchaser must, within five (5) working days of such imposition, furnish the National

Treasury with the following information:

i. the name and address of the supplier and / or person restricted by the purchaser;

ii. the date of commencement of the restriction

iii. the period of restriction; and

iv. the reasons for the restriction.

These details will be loaded in the National Treasury’s central database of suppliers or persons prohibited from doing

business with the public sector.

23.7. If a court of law convicts a person of an offence as contemplated in sections 12 or 13 of the Prevention and

Combating of Corrupt Activities Act, No. , the court may also rule that such person’s name be endorsed

on the Register for Tender Defaulters. When a person’s name has been endorsed on the Register, the person will

be prohibited from doing business with the public sector for a period not less than five years and not more than 10

years. The National Treasury is empowered to determine the period of restriction, and each case will be dealt with

on its own merits. According to section 32 of the Act the Register must be open to the public. The Register can be

perused on the National Treasury website.

24. Anti-dumping and countervailing duties and rights

24.1. When, after the date of bid, provisional payments are required, or antidumping or countervailing duties are imposed,

or the amount of a provisional payment or anti-dumping or countervailing right is increased in respect of any

dumped or subsidized import, the State is not liable for any amount so required or imposed, or for the amount of

any such increase. When, after the said date, such a provisional payment is no longer required or any such anti-

dumping or countervailing right is abolished, or where the amount of such provisional payment or any such right is

reduced, any such favourable difference shall on demand be paid forthwith by the contractor to the State or the

State may deduct such amounts from moneys (if any) which may otherwise be due to the contractor in regard to

supplies or services which he delivered or rendered, or is to deliver or render in terms of the contract or any other

contract or any other amount which may be due to him

25. Force Majeure

25.1. Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liable for forfeiture of its performance

security, damages, or termination for default if and to the extent that his delay in performance or other failure to perform

his obligations under the contract is the result of an event of force majeure.

25.2. If a force majeure situation arises, the supplier shall promptly notify the purchaser in writing of such condition and the

cause thereof. Unless otherwise directed by the purchaser in writing, the supplier shall continue to perform its

obligations under the contract as far as is reasonably practical and shall seek all reasonable alternative means for

performance not prevented by the force majeure event.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

26. Termination for insolvency

26.1. The purchaser may at any time terminate the contract by giving written notice to the supplier if the supplier becomes

bankrupt or otherwise insolvent. In this event, termination will be without compensation to the supplier, provided that

such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter

to the purchaser.

27. Settlement of Disputes

27.1. If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in connection with

or arising out of the contract, the parties shall make every effort to resolve amicably such dispute or difference by mutual

consultation.

27.2. If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual consultation, then

either the purchaser or the supplier may give notice to the other party of his intention to commence with mediation. No

mediation in respect of this matter may be commenced unless such notice is given to the other party.

27.3. Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court of law.

27.4. Mediation proceedings shall be conducted in accordance with the rules of procedure specified in the SCC.

27.5. Notwithstanding any reference to mediation and/or court proceedings herein,

(a) the parties shall continue to perform their respective obligations under the contract unless they otherwise agree;

and

(b) the purchaser shall pay the supplier any monies due the supplier.

28. Limitation of liability

28.1. Except in cases of criminal negligence or wilful misconduct, and in the case of infringement pursuant to Clause 6;

a) the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or

consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided that this

exclusion shall not apply to any obligation of the supplier to pay penalties and/or damages to the purchaser; and

b) the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or otherwise, shall not

exceed the total contract price, provided that this limitation shall not apply to the cost of repairing or replacing

defective equipment.

29. Governing language

29.1. The contract shall be written in English. All correspondence and other documents pertaining to the contract that

is exchanged by the parties shall also be written in English.

30. Applicable law

30.1. The contract shall be interpreted in accordance with South African laws, unless otherwise specified in SCC.

31. Notices

31.1. Every written acceptance of a bid shall be posted to the supplier concerned by registered or certified mail and any

other notice to him shall be posted by ordinary mail to the address furnished in his bid or to the address notified later

by him in writing and such posting shall be deemed to be proper service of such notice.

31.2. The time mentioned in the contract documents for performing any act after such aforesaid notice has been given,

shall be reckoned from the date of posting of such notice.

32. Taxes and duties

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

32.1. A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and other such levies imposed

outside the purchaser’s country.

32.2. A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred until delivery of the

contracted goods to the purchaser.

32.3. No contract shall be concluded with any bidder whose tax matters are not in order. Prior to the award of a bid the

Department must be in possession of a tax clearance certificate, submitted by the bidder. This certificate must be

an original issued by the South African Revenue Services.

33. National Industrial Participation (NIP) Programme

33.1. The NIP Programme administered by the Department of Trade and Industry shall be applicable to all contracts that

are subject to the NIP obligation.

34. Prohibition of Restrictive practices

34.1. In terms of section 4 (1) (b) (iii) of the Competition Act No. , as amended, an agreement between, or

concerted practice by, firms, or a decision by an association of firms, is prohibited if it is between parties in a horizontal

relationship and if a bidder (s) is / are or a contractor(s) was / were involved in collusive bidding (or bid rigging).

34.2. If a bidder(s) or contractor(s), based on reasonable grounds or evidence obtained by the purchaser, has / have

engaged in the restrictive practice referred to above, the purchaser may refer the matter to the Competition

Commission for investigation and possible imposition of administrative penalties as contemplated in the Competition

Act No. .

34.3. If a bidder(s) or contractor(s), has / have been found guilty by the Competition Commission of the restrictive practice

referred to above, the purchaser may, in addition and without prejudice to any other remedy provided for, invalidate

the bid(s) for such item(s) offered, and / or terminate the contract in whole or part, and / or restrict the bidder(s) or

contractor(s) from conducting business with the public sector for a period not exceeding ten (10) years and / or claim

damages from the bidder(s) or contractor(s) concerned.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

4.3. Changes to this RFQ document

4.3.1. Council for Medical Schemes reserves the right to make changes to this RFQ Document. All changes will be communicated

to those firms that have responded to the RFQ. No reliance shall be placed on other information or comment from any other

person.

4.4. Validity Period

4.4.1. The validity period of the RFQ/RFP is ninety (90) days. A request to extend the validity period will be communicated to

service providers that responded to the RFQ/RFP.

4.5. Confidentiality

4.5.1. Any information relating to the submissions, through the process or otherwise, shall be treated in strict confidence.

4.6. Tax Compliance

4.6.1. CMS will not award any bid to any bidder who is not tax compliant. If a recommended bidder is not tax-compliant, the bidder

will be notified in writing of their non-compliant status and requested to submit written proof from SARS of their tax-compliant

status, or proof that they have arranged to meet their outstanding tax obligations, within seven (7) working days. If the bidder

fails to do so or submits proof that their tax matters are compliant, CMS will reject their bid.

4.6.2. CMS reserves the right to withdraw an award made, or cancel a contract concluded with a successful bidder if it is established

that such bidder was in fact not tax compliant at the time of the award or has submitted a fraudulent Tax Clearance Certificate

to the CMS, or whose verification against the Central Supplier Database (CSD) proves non-compliant.

4.7. Costs for Preparation of the Bid

site visits, and the submission of proposals/quotations.

4.8. Rejection of Bids

4.8.1. CMS reserves the right to reject any bid or not to appoint a bidder under the following conditions:

4.8.1.1. Past Fraudulent Activity or Misrepresentation

4.8.1.1.1. If it is established that the bidder, or any of its directors, members, shareholders, or related parties:

o Has been convicted of fraud, corruption, collusion, or any related criminal offence within the past five (5) years.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

o Has submitted false or misleading information in any procurement process, whether with this institution or any

other public sector entity.

o Has been blocked or listed on the National Treasury’s database of restricted bidders or tender defaulters.

4.8.2. Listing on the National Treasury Database

4.8.2.1. Any bidder currently listed on the National Treasury’s list of restricted bidders or tender defaulters, in terms of

Sections 28 and 29 of the Preferential Procurement Regulations, will be disqualified.

4.8.3. Reputational Risk

4.8.3.1. CMS reserves the right not to appoint a bidder where past conduct poses a significant reputational or operational risk,

even if the bidder meets technical and price criteria.

4.8.4. Right Not to Appoint

4.8.4.1. CMS reserves the right not to appoint any bidder and to cancel the procurement process without incurring any liability,

particularly where integrity concerns exist.

4.3. Name of company/firm...............................................................................

4.4. Company registration number: .....................................................................

4.5. Type of company/ firm

 Partnership/Joint Venture / Consortium

 One-person business/sole proprietorship

 Close corporation

 Public Company

 Personal Liability Company

 (Pty) Limited

 Non-Profit Company

 State-Owned Company

[Tick applicable box]

4.6. 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, qualify 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

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

form;

iii) In the event of a contract being awarded because of points claimed as shown in paragraphs 1.4 and 4.2, the

contractor may be required to furnish documentary proof to the satisfaction of the organ of state that the claims are

correct;

iv) If the specific goals have been claimed or obtained on a fraudulent basis or any of the conditions of the contract have

not been fulfilled, the organ of state may, in addition to any other remedy it may have –

(a) disqualify the person from the tendering process;

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

(c) cancel the contract and claim any damages which it has suffered because of having to make less

favourable arrangements due to such cancellation;

(d) recommend that the tenderer or contractor, its shareholders and directors, or only the shareholders

and directors who acted on a fraudulent basis, be restricted 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 prosecution, if deemed necessary.

DATE: ...............................................................(b)

ADDRESS: ...............................................................(c) ..............................................

...............................................................(d) SIGNATURE(S) OF TENDERER(S)

(e) ............................................................... ...............................................................

(f) SURNAME AND NAME: ................................................................

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

Government procurement – annexure c

GENERAL CONDITIONS OF CONTRACT July 2010

1.1. “Closing time” means the date and hour specified in the bidding documents for the receipt of bids.

1.2. “Contract” means the written agreement entered into between the purchaser and the supplier, as recorded in the contract

form signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference

therein.

1.3. “Contract price” means the price payable to the supplier under the contract for the full and proper performance of his

contractual obligations.

1.4. “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of value to influence the action of a public

official in the procurement process or in contract execution.

1.5. "Countervailing duties" are imposed in cases where an enterprise abroad is subsidized by its government and encouraged

to market its products internationally.

1.6. “Country of origin” means the place where the goods were mined, grown or produced or from which the services are

supplied. Goods are produced when, through manufacturing, processing or substantial and major assembly of components,

a commercially recognised new product results that is substantially different in basic characteristics or in purpose or utility

from its components.

1.7. “Day” means calendar day.

1.8. “Delivery” means delivery in compliance with the conditions of the contract or order.

1.9. “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10. “Delivery into consignee's store or to his site” means delivered and unloaded in the specified store or depot or on the

specified site in compliance with the conditions of the contract or order, the supplier bearing all risks and charges involved

until the supplies are so delivered and a valid receipt is obtained.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

1.11. "Dumping" occurs when a private enterprise abroad market its goods on own initiative in the RSA at lower prices than that

of the country of origin and which have the potential to harm the local industries in the RSA.

1.12. ” Force majeure” means an event beyond the control of the supplier and not involving the supplier’s fault or negligence,

and not foreseeable. Such events may include, but are not restricted to, acts of the purchaser in its sovereign capacity, wars

or revolutions, fires, floods, epidemics, quarantine restrictions and freight embargoes.

1.13. “Fraudulent practice” means a misrepresentation of facts to influence a procurement process or the execution of a contract

to the detriment of any bidder and includes collusive practice among bidders (before or after bid submission) designed to

establish bid prices at artificial non-competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14. “GCC” means the General Conditions of Contract.

1.15. “Goods” means all of the equipment, machinery, and/or other materials that the supplier is required to supply to the

purchaser under the contract.

1.16. “Imported content” means that portion of the bidding price represented by the cost of components, parts or materials which

have been or are still to be imported (whether by the supplier or his subcontractors) and which costs are inclusive of the

costs abroad, plus freight and other direct importation costs such as landing costs, dock dues, import duty, sales duty or

other similar tax or duty at the South African place of entry as well as transportation and handling charges to the factory in

the Republic where the supplies covered by the bid will be manufactured.

1.17. “Local content” means that portion of the bidding price that is not included in the imported content, provided that local

manufacture takes place.

1.18. “Manufacture” means the production of products in a factory using labour, materials, components and machinery and

includes other related value-adding activities.

1.19. “Order” means an official written order issued for the supply of goods or works or the rendering of a service.

1.20. “Project site,” where applicable, means the place indicated in bidding documents.

1.21. “Purchaser” means the organisation purchasing the goods.

1.22. “Republic” means the Republic of South Africa.

1.23. “SCC” means the Special Conditions of Contract.

1.24. “Services” means that functional services ancillary to the supply of the goods, such as transportation and any other

incidental services, such as installation, commissioning, provision of technical assistance, training, catering, gardening,

security, maintenance and other such obligations of the supplier covered under the contract.

1.25. “Written” or “in writing” means handwritten in ink or any form of electronic or mechanical writing.

6.1. The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark, or industrial

design rights arising from use of the goods or any part thereof by the purchaser.

7.1. Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the purchaser

the performance security of the amount specified in SCC.

7.2. The proceeds of the performance security shall be payable to the purchaser as compensation for any loss resulting from

the supplier’s failure to complete his obligations under the contract.

7.3. The performance security shall be denominated in the currency of the contract, or in a freely convertible currency

acceptable to the purchaser and shall be in one of the following forms:

a) a bank guarantee or an irrevocable letter of credit issued by a reputable bank located in the purchaser’s country or

abroad, acceptable to the purchaser, in the form provided in the bidding documents or another form acceptable to the

purchaser; or

b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later than thirty (30) days

following the date of completion of the supplier’s performance obligations under the contract, including any warranty

obligations, unless otherwise specified in SCC.

13.1. The supplier may be required to provide any or all of the following services, including additional services, if any, specified

in SCC:

a) performance or supervision of on-site assembly and/or commissioning of the supplied goods;

b) furnishing of tools required for assembly and/or maintenance of the supplied goods;

c) furnishing of a detailed operations and maintenance manual for each appropriate unit of the supplied goods;

d) performance or supervision or maintenance and/or repair of the supplied goods, for a period of time agreed by the

parties, provided that this service shall not relieve the supplier of any warranty obligations under this contract; and

e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly, start-up, operation,

maintenance, and/or repair of the supplied goods.

13.2. Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall be agreed

upon in advance by the parties and shall not exceed the prevailing rates charged to other parties by the supplier for

similar services.

14.1. As specified in SCC, the supplier may be required to provide any or all of the following materials, notifications, and

information about spare parts manufactured or distributed by the supplier:

a) such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall not relieve

the supplier of any warranty obligations under the contract; and

b) in the event of termination of production of the spare parts:

✓ advance notification to the purchaser of the pending termination, in sufficient time to permit the purchaser to

procure needed requirements; and

✓ following such termination, furnishing at no cost to the purchaser, the blueprints, drawings, and specifications of

the spare parts, if requested.

15. Warranty

15.1. The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or current models,

and that they incorporate all recent improvements in design and materials unless provided otherwise in the contract.

materials, or workmanship (except when the purchaser’s specifications require the design and/or material) or from any

act or omission of the supplier, that may develop under normal use of the supplied goods in the conditions prevailing

in the country of final destination.

15.2. This warranty shall remain valid for twelve (12) months after the goods, or any portion thereof as the case may be, have

been delivered to and accepted at the final destination indicated in the contract, or for eighteen (18) months after the

date of shipment from the port or place of loading in the source country, whichever period concludes earlier, unless

specified otherwise in SCC.

15.3. The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

15.4. Upon receipt of such notice, the supplier shall, within the period specified in SCC and with all reasonable speed, repair

or replace the defective goods or parts thereof, without costs to the purchaser.

15.5. If the supplier, having been notified, fails to remedy the defect(s) within the period specified in SCC, the purchaser may

proceed to take such remedial action as may be necessary, at the supplier’s risk and expense and without prejudice to

any other rights which the purchaser may have against the supplier under the contract.

20.1. The supplier shall notify the purchaser in writing of all subcontracts awarded under this contract if not already specified

in the bid. Such notification, in the original bid or later, shall not relieve the supplier from any liability or obligation under

the contract.

21. Delays in the supplier’s performance

21.1. The supplier shall make delivery of the goods and performance of services in accordance with the schedule prescribed

by the purchaser in the contract.

21.2. If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter conditions

impeding timely delivery of the goods and performance of services, the supplier shall promptly notify the purchaser in

writing of the fact of the delay, its likely duration and its cause(s). As soon as practicable after receipt of the supplier’s

notice, the purchaser shall evaluate the situation and may, at his discretion, extend the supplier’s time for performance,

with or without the imposition of penalties, in which case the extension shall be ratified by the parties by amendment of

the contract.

21.3. No provision in a contract shall be deemed to prohibit the obtaining of supplies or services from a national department,

provincial department, or local authority.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

21.4. The right is reserved to procure outside of the contract small quantities or to have minor essential services executed if

an emergency arises, the supplier’s point of supply is not situated at or near the place where the supplies are required,

or the supplier’s services are not readily available.

21.5. Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations shall

render the supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension of time is

agreed upon pursuant to GCC Clause 21.2 without the application of penalties.

21.6. Upon any delay beyond the delivery period in the case of a supplies contract, the purchaser shall, without cancelling

the contract, be entitled to purchase supplies of a similar quality and up to the same quantity in substitution of the goods

not supplied in conformity with the contract and to return any goods delivered later at the supplier’s expense and risk,

or to cancel the contract and buy such goods as may be required to complete the contract and without prejudice to his

other rights, be entitled to claim damages from the supplier.

22.1. Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services within the

period(s) specified in the contract, the purchaser shall, without prejudice to its other remedies under the contract, deduct

from the contract price, as a penalty, a sum calculated on the delivered price of the delayed goods or unperformed

services using the current prime interest rate calculated for each day of the delay until actual delivery or performance.

The purchaser may also consider termination of the contract pursuant to GCC Clause 23.

23.1. The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent to the

supplier, may terminate this contract in whole or in part:

a) if the supplier fails to deliver any or all the goods within the period(s) specified in the contract, or within any

extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

b) if the Supplier fails to perform any other obligation(s) under the contract; or

c) if the supplier, in the judgment of the purchaser, has engaged in corrupt or fraudulent practices in competing for or

in executing the contract.

23.2. In the event the purchaser terminates the contract in whole or in part, the purchaser may procure, upon such terms and

in such manner as it deems appropriate, goods, works or services similar to those undelivered. The supplier shall be

liable to the purchaser for any excess costs for such similar goods, works or services. However, the supplier shall

continue performance of the contract to the extent not terminated.

23.3. Where the purchaser terminates the contract in whole or in part, the purchaser may decide to impose a restriction

penalty on the supplier by prohibiting such supplier from doing business with the public sector for a period not exceeding

10 years.

23.4. If a purchaser intends restricting a supplier or any person associated with the supplier, the supplier will be allowed a

time period of not more than fourteen (14) days to provide reasons why the envisaged restriction should not be imposed.

Should the supplier fail to respond within the stipulated fourteen (14) days, the purchaser may regard the intended

penalty as not objected to and may impose it on the supplier.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

23.5. Any restriction imposed on any person by the Accounting Officer / Authority will, at the discretion of the Accounting

25.1. Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liable for forfeiture of its performance

security, damages, or termination for default if and to the extent that his delay in performance or other failure to perform

his obligations under the contract is the result of an event of force majeure.

25.2. If a force majeure situation arises, the supplier shall promptly notify the purchaser in writing of such condition and the

cause thereof. Unless otherwise directed by the purchaser in writing, the supplier shall continue to perform its

obligations under the contract as far as is reasonably practical and shall seek all reasonable alternative means for

performance not prevented by the force majeure event.

Chairperson: Dr T. Mabeba Chief Executive & Registrar: Dr M. Gumede

Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenue, Eco Park, Centurion, 0157

Tel: 012 431 0500 Fax: 012 430 7644 Customer Care: 0861 123 267

[email protected] www.medicalschemes.co.za

26.1. The purchaser may at any time terminate the contract by giving written notice to the supplier if the supplier becomes

bankrupt or otherwise insolvent. In this event, termination will be without compensation to the supplier, provided that

such termination will not prejudice or affect any right of action or remedy which has accrued or will accrue thereafter

to the purchaser.

27.1. If any dispute or difference of any kind whatsoever arises between the purchaser and the supplier in connection with

or arising out of the contract, the parties shall make every effort to resolve amicably such dispute or difference by mutual

consultation.

27.2. If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual consultation, then

either the purchaser or the supplier may give notice to the other party of his intention to commence with mediation. No

mediation in respect of this matter may be commenced unless such notice is given to the other party.

27.3. Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court of law.

27.4. Mediation proceedings shall be conducted in accordance with the rules of procedure specified in the SCC.

27.5. Notwithstanding any reference to mediation and/or court proceedings herein,

(a) the parties shall continue to perform their respective obligations under the contract unless they otherwise agree;

and

(b) the purchaser shall pay the supplier any monies due the supplier.

28.1. Except in cases of criminal negligence or wilful misconduct, and in the case of infringement pursuant to Clause 6;

a) the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or

consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided that this

exclusion shall not apply to any obligation of the supplier to pay penalties and/or damages to the purchaser; and

b) the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or otherwise, shall not

exceed the total contract price, provided that this limitation shall not apply to the cost of repairing or replacing

defective equipment.

3. Evaluation criteria process

3.1. Table 1 – Evaluation Process and Criteria

Stage Details

Phase 1 Mandatory evaluation criteria: These criteria assess bidders' eligibility and prior experience in providing the

Phase 2 Price and Specific Goals evaluation criteria: These criteria evaluate bidders based on bid price and Specific

Specific Goals.

be assessed using the 80/20 formula (Preference Points System) for Price and Specific Goals as indicated in the

PPPFA Regulations.

Table 3 - Price and Specific Goals

(a) Historically Disadvantaged Individuals (5 Points)

80% - 100% Black Owned 5 Points

50% - 79.99 Black Owned 4 Points

20% - 49.99% Black Owned 3 Points

(b) Size of the Company (3 Points)

EME 3 Points

QSE 2 Points

Generic Enterprise 1 Points

Specific Goals 20

(c) Black Woman-Owned Enterprise (5 Points)

75% - 100% Black Women 5 Points

51% - 74,99% Black Women 3 Points

d) Ownership by People with Disabilities (3 Points)

75% - 100% Ownership by People with 3 Points

51% - 74,99% Ownership by People with 2 Points

(e) Ownership by Youth (under 35 years) (4 Points)