Auction services for disposal of redundant municipal assets

1. Background information

Nongoma Municipality is in the process of getting rid of all the municipal assets that are

redundant. The Municipality has the duty to detect all the assets that no longer meet the

minimum requirements for service delivery and dispose them off. Section 14 of the MFMA

states: (2) A municipality may transfer ownership or otherwise dispose of a capital asset

other than one contemplated in subsection (1) but only after the municipality council, in a

meeting open to the public- (a) has decided on reasonable grounds that the asset needed

to provide the minimum level of basic municipal services: Arising from above legislation it is

essential that Nongoma Municipality invites proposals on rendering of services for

auctioning redundant assets.

2. Key objectives

The support of a Service Provider is required to assist with the following in terms of

specifications indicated and amongst other things:

✓ Have a proper plan on how the auction will be done.

✓ Determine a day for viewing the assets to be disposed of

✓ Ensure that the pricing of the assets is determined so that the municipality does not run

a loss on sale of assets. (Determine the current value of the assets)

3.1. Service provider will be required to manage and handle auctions on behalf of the Municipality.

3.2. Prepare and sell all identified assets of the Municipality to the Public.

3.3. Collect cash received from the Auction and ensure that same is deposited i n t o

the municipality’s bank account.

3.4 Arrange the necessary transfer documents for assets sold.

3.5 Arrange for transportation of assets from identified Nongoma premises to the auction

location and back to Nongoma premises if those assets are not sold.

3.6 The service provider will be required to report to the Chief Financial Officer or a

delegated Official at the end of the project and during the project.

3.7 The office of the CFO or delegated official will provide the necessary support to

enable the service provider to complete the project such as locating a proper venue

for auction and assist co-coordinating the auction successfully.

3.8 Provide a reconciliation report of the Auction.

3.9 The service provider shall carry out the service in accordance with the

methodology as recorded in its proposal submitted to the municipality in so far as it

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Bidder (initial) employer(initial)

does not conflict with the Municipality’s terms of reference, which form the basis of this

agreement and the latter takes precedence.

3.10 The parties specifically agree that the terms of reference, appointment letter and the proposal

letter shall be read as specifically incorporated herein.

3.11 The scope covers the below listed assets that need to be disposed at a buyer commission, it

includes setting up of an auction date and time.

3.12 The service provider will be required to commence with the assignment within seven

(3) calendar days of being advised of an appointment.

3.13 Completion of the project should be two (2) months from the date of appointment.

3.14 Bidders are required to submit detailed Proposals indicating detailed deliverables

and timeframes.

3.15 Bidders to note that only Auctioneers quoted percentage of gross revenue will be accepted.

3.16 Payments will be made to the service provider after satisfactory completion of the Auction

and approval of the Chief Financial Officer.

3.17 List will be shared with the successful bidder.

Identified land/sites:

Erf88,453,446,447and448

Available services: water and electricity

Size of land parcels:

⎯ Total extent: 20,824 square meters= 2Hactares

Zoning: High residential impact (Erf 88, 446, 447 and 448) and Passive open space (Erf 453)

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Erf 35, erf 43 and erf 44

Available services: water and electricity

Size of land parcels:

⎯ Erf 35: 2,703 sqm

⎯ Erf 43: 4,034 sqm and

⎯ Erf 44: 4,002 sqm

Zoning: Core mixed use

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4. Erf 416

Size of land parcel: 2,621 sqm

Zoning: Light industry

Available services: water and electricity

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Form of offer and acceptance

A. Offer

RFQ NO: 9/1/1 – RFQ027/2025/26

Project description: provision of an auction services

Municipal manager: nongoma local municipality

Sir,

Having examined the documentation of the above-mentioned services, I/we offer to provide a

professional service for the said works in conformity with the aforesaid documentation, for the

sum as set out hereunder:

Commission Percentage: ________________%

Percentage in words: ________________________________________

Or such other sum as may be ascertained in accordance with the contract.

I/we are registered VAT vendors and the above price INCLUDES VAT.

I/we acknowledge that the VAT vending status as disclosed on this tender form shall remain

constant for all purposes under this contract and no claim for adjustment will be entertained for

any such claim.

In the event of there being any errors of extension or addition in the priced schedule of

quantities (and/or specification), I/we agree to their being corrected, the rates being taken as

correct.

I/we undertake to complete and deliver the whole of the works comprised in the contract within

the time stated.

I/we are formally associated by written agreement with the following firms, corporations or

companies:

(Enter Nil if no affiliations)

I/we are fully paid up members in good standing of the following organization(s):

(Enter Nil if no affiliations)

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My/Our VAT vendor registration number is:

I/We bank at the branch of__________ Where I/we have

a Account (no. )

Bankers contact name & Tel no. __________________

I/we acknowledge that proof of the information entered in this offer required in terms of this

document and/or provisional Letter of Acceptance, will be submitted and that the absence of

such information or the failure to comply will render this offer unresponsive (invalid).

It is agreed and understood that this tender is valid for 120 days from the date hereof and that it,

together with your final letter of acceptance, shall constitute a binding contract between us.

I/We understand that Nongoma Municipality is not bound to accept the lowest or any tender and

acknowledge that the Nongoma Municipality may, if in its absolute discretion good and sufficient

grounds are brought to its attention in writing within 5 working days from date hereof, decline to

consider my/our offer.

Yours faithfully

Signature: ____________________________________

On behalf of: __________________________________

Postal address: ____________________________________

---

---

Street address: ____________________________________

(A street address where the

Tenderer can be reliably contacted _________________________________________

Must be given for the purpose of

domicile citandi et executandi) ____________________________________________

Date: ____________________________________

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Mbd 4

Declaration of interest

1. No bid will be accepted from persons in the service of the state1.

2. Any person, having a kinship with persons in the service of the state, including a blood

relationship, may make an offer or offers in terms of this invitation to bid. In view of

possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to

persons connected with or related to persons in service of the state, it is required that the

bidder or their authorised representative declare their position in relation to the

evaluating/adjudicating authority.

3 In order to give effect to the above, the following questionnaire must be completed and

submitted with the bid.

3.1 Full Name of bidder or his or her representative: ..................................................

3.2 Identity Number: ........................................................................................

3.3 Position occupied in the Company (director, trustee, hareholder2): .............................

3.4 Company Registration Number: ...................................................................

3.5 Tax Reference Number: ................................................

3.6 VAT Registration Number: ........................................................................

3.7 The names of all directors / trustees / shareholders members, their individual identity

numbers and state employee numbers must be indicated in paragraph 4 below.

3.8 Are you presently in the service of the state? YES / NO

3.8.1If yes, furnish particulars..........................................................................

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

1MSCM Regulations: “in the service of the state” means to be –

(a) a member of –

(i) any municipal council;

(ii) any provincial legislature; or

(iii) the national Assembly or the national Council of provinces;

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

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

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

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

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

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

2 Shareholder” means a person who owns shares in the company and is actively involved in the management of the company or

business and exercises control over the company.

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3.9 Have you been in the service of the state for the past twelve months? ...YES / NO

3.9.1Ifyes,furnish particulars...........................................................................

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

3.10 Do you have any relationship (family, friend, other) with persons

in the service of the state and who may be involved with

the evaluation and or adjudication of this bid?................................. YES / NO

3.10.1Ifyes, furnish particulars.

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

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

3.11 Are you, aware of any relationship (family, friend, other) between

any other bidder and any persons in the service of the state who

may be involved with the evaluation and or adjudication of this bid? YES / NO

3.11.1Ifyes, furnish particulars

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

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

3.12 Are any of the company’s directors, trustees, managers,

Principle shareholders or stakeholders in service of the state? YES / NO

3.12.1 If yes, furnish particulars.

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

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

3.13 Are any spouse, child or parent of the company’s directors

trustees, managers, principle shareholders or stakeholders

in service of the state? YES / NO

3.13.1Ifyes, furnish particulars.

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

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

3.14 Do you or any of the directors, trustees, managers,

principle shareholders, or stakeholders of this company

have any interest in any other related companies or

business whether or not they are bidding for this contract. YES / NO

3.14.1 If yes, furnish particulars ONLY as per the below table requirements:

Where space provided is not sufficient, please attach a similar table

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Director Name CSD Number Company Status

Active Inactive Deleted

4. Full details of directors / trustees / members / shareholders.

Full Name Identity Number State Employee

Number

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

Signature Date

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

Capacity Name of Bidder

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Mbd 6.1

Preference points claim form in terms of the preferential

Procurement regulations 2022

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

and serves as a claim form for preference points for Specific Goals.

1. General conditions

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

• the 80/20 system for requirements with a Rand value of R30 000.00 up to R50 000 000

(all applicable taxes included); and

• the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable

taxes included).

1.2 The value of this bid is estimated to not exceed R50 000 000 (all applicable taxes included) and

therefore the 80/20 system shall be applicable.

1.3 Preference points for this bid shall be awarded for:

(a) Price; and

(b) Specific Goal.

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

Points

1.3.1.1 Price 80

1.3.1.2 Specific goals 20

Total points for Price and Specific Goals 100

1.4 Failure to submit CIPC Registration document and/or Central Data Base Report.

1.4. The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at

any time subsequently, to substantiate any claim in regard to preferences, in any manner

required by the purchaser.

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2. Definitions

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

insurance

fund contributions and skills development levies;

2.2 “Highest acceptable tender” means a tender that complies with all specifications and

conditions of tender and that has the highest price compared to the other tenders;

2.3 “lowest acceptable tender” means a tender that complies with all the specifications and

conditions of tender and has lowest price compared to the other tenders;

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

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

competitive bidding processes or proposals;

2.5 “price” means an amount of money tendered for goods or services and includes all applicable

taxes less all unconditional discounts;

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

discounts that can be utilized have been taken into consideration;

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

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

contract;

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

2.9 “Firm price” means the price that is only subject to adjustments in accordance with the actual

increase or decrease resulting from the change, imposition, or abolition of customs or excise duty

and any other duty, levy, or tax, which, in terms of the law or regulation, is binding on the

contractor and demonstrably has an influence on the price of any supplies, or the rendering costs

of any service, for the execution of the contract;

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

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

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

of a

service and the technical capacity and ability of a bidder;

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

2.12 “person” includes a juristic person;

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

at

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

2.14 “sub-contract” means the primary contractor’s assigning, leasing, making out work to, or

employing, another person to support such primary contractor in the execution of part of a

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project in terms of the contract;

2.15 “specific goals” means specific goals as contemplated in section 2 (1)(d) of the Act which may

include contracting with persons or categories of persons, historically disadvantaged by unfair

discrimination on the basis of race, gender and disability including the implementation of

programmes of the Reconstruction and Development Programme as published in Government

Gazette No. 16085 dated 23 November 1994;

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

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

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

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

3. Adjudication using a point system

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

3.2 Preference points shall be calculated after prices have been brought to a comparative basis

taking into account all factors of non-firm prices and all unconditional discounts;

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

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

must be the one scoring the highest number of preference points for specific goals.

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

scored equal points including equal preference points for specific goals, the successful bid

must be the one scoring the highest score for functionality.

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

drawing of lots.

4. Points awarded for price

4.1 The 80/20 or 90/10 preference point systems

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

80/20 or 90/10

 Pt − P min   Pt − P min  Ps = 801 −  or Ps = 90 1 − 

 P min   P min 

Where

Ps = Points scored for comparative price of bid under consideration

Pt = Comparative price of bid under consideration

Pmin = Comparative price of lowest acceptable bid

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5. Points awarded for a Specific Goals

5.1 In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference

points must be awarded to a bidder for a specific goal stated in the tender advert in accordance

with the table below:

Table 1: Specific goals for the tender and points claimed are indicated per the table

below.

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

point system.)

Specific Goals allocated points in terms of this tender Number of Number of points Verification Method,

points allocated a Bidder must

allocated submit: (80/20 system)

(80/20 system) To be completed

by the bidder

Historically Disadvantaged Individual (HDI) Black 10 MAX

Full CSD Report notOwnership 10

older than 2 months100% Black Ownership 5

Equal or Greater than 51% Black Ownership

Historically Disadvantaged Individual (HDI) Youth 05 MAX

Full CSD Report not100% Youth Owned 05

older than 2 monthsEqual or Greater than 51% Youth Owned 2

Historically Disadvantaged Individual (HDI) Disabled 05 MAX

Valid Doctor’s100% Disabled Owned 05

certificate not olderEqual or Greater than 51% Disabled Owned 02

than 12 months

Total points 20

6 declarations with regard to company/firm

6.1 Name of firm : .............................................................................................

6.2 VAT registration number : .............................................................................................

6.3 Company registration number ...............................................................................

:

6.4 Type of company/ firm

 Partnership/Joint Venture / Consortium

 One person business/sole propriety

 Close corporation

 Company

 (Pty) Limited

[Tick applicable box]

6.5 Describe principal business activities

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

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

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6.6 Company classification

 Manufacturer

 Supplier

 Professional service provider

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

[Tick applicable box]

6.7 Municipal information

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

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

Stand Number ..................................................................

6.8 Total number of years the company/firm has been in business. .....................

6.9 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm,

certify that the points claimed, based on the Specific Goals indicated in paragraph 5 of the

foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we

acknowledge that:

(i) The information furnished is true and correct;

(ii) The preference points claimed are in accordance with the General Conditions as

indicated in paragraph 1.

(iii) In the event of a contract being awarded as a result of points claimed as shown in

paragraph 5, the contractor may be required to furnish documentary proof to the

satisfaction of the purchaser that the claims are correct;

(iv) If the Specific Goals has been claimed or obtained on a fraudulent basis or any of the

conditions of contract have not been fulfilled, the purchaser may, in addition to any

other remedy it may have –

(a) disqualify the person from the bidding process;

(b) recover costs, losses or damages it has incurred or suffered as a result of that

person’s conduct;

(c) cancel the contract and claim any damages which it has suffered as a result of

having to make less favourable arrangements due to such cancellation;

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

shareholders and directors who acted on a fraudulent basis, from obtaining

business from any organ of state for a period not exceeding 10 years, after the

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

(e) forward the matter for criminal prosecution

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Witnesses:

1. .............................................

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

Signature(s)of bidder(s)

2. .............................................

Date:......................................

Address:................................

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

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

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

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Mbd 7.1

Contract form – purchase of goods/ services

This form must be filled in duplicate by both the successful bidder (part 1) and

The purchaser (part 2). Both forms must be signed in the original so that the

Successful bidder and the purchaser would be in possession of originally

Signed contracts for their respective records.

Part 1 (to be filled in by the bidder)

1. I hereby undertake to supply all or any of the goods and/or works described in the attached

bidding documents to (name of institution) Nongoma Municipality in accordance with the

requirements and specifications stipulated in bid number RFQ: ................... at the price/s

quoted. My offer/s remain binding upon me and open for acceptance by the purchaser during the

validity period indicated and calculated from the closing time of bid.

2. The following documents shall be deemed to form and be read and construed as part of this

agreement:

(i) Bidding documents,

• Invitation to bid;
• Tax clearance certificate;
• Pricing schedule(s);
• Technical Specification(s);
• Preference claims for specific goals in terms of the Preferential Procurement

Regulations 2022;

• Declaration of interest;
• Declaration of bidder’s past SCM practices;
• Certificate of Independent Bid Determination;
• Special Conditions of Contract;

(ii) General Conditions of Contract; and

(iii) Other (specify)

3. I confirm that I have satisfied myself as to the correctness and validity of my bid; that the price(s)

and rate(s) quoted cover all the goods and/or works specified in the bidding documents; that the

price(s) and rate(s) cover all my obligations and I accept that any mistakes regarding price(s) and

rate(s) and calculations will be at my own risk.

4. I accept full responsibility for the proper execution and fulfilment of all obligations and conditions

devolving on me under this agreement as the principal liable for the due fulfilment of this contract.

5. I declare that I have no participation in any collusive practices with any bidder or any other person

regarding this or any other bid.

Witnesses

6. I confirm that I am duly authorised to sign this contract.
7. ........................

Name (print) : ............................................................

Capacity : ............................................................ 2. ........................

Signature : ............................................................ Date: .........................

Name of firm : ....................................................................................

Date : ....................................................................................

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Mbd 7.1

Contract form – purchase of goods/ services

Part 2 (to be filled in by the purchaser)

1. I MPUMELELO B. MNGUNI in my capacity as ACTING MUNICIPAL MANAGER accept your bid

under reference number 9/1/1-RFQ118/2025/26 dated...........................for the supply of

goods/works indicated hereunder and/or further specified in the annexure(s).

2. An official order indicating delivery instructions is forthcoming.

3. I undertake to make payment for the goods/works delivered in accordance with the terms and

conditions of the contract, within 30 (thirty) days after receipt of an invoice accompanied by the

delivery note.

Item price (all applicable delivery

Brand specific goals points

NO. taxes included) period

1 Historically Disadvantaged Individual

(HDI) Black – 10 Points

3 Historically Disadvantaged Individual

(HDI) Youth – 5 Points

.........Days4

Historically Disadvantaged Individual

(HDI) Disabled – 5 Points

4. I confirm that I am duly authorized to sign this contract.

Signed at .............................................ON.....................................

Witnesses

Name (print) ...........................................

1. ............................

Signature ...........................................

2. ............................

Official stamp

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

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