Supply and delivery of fuel and petroleum products (panel) – alfred duma local municipality

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Compulsory briefing session: Friday 11 September 2026 at 10:00 am at Legal Services Boardroom, Lister Clarence Building, 221 Murchison Street, Ladysmith. Failure to attend will invalidate bid.

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Alfred duma local municipality

Department budget and treasury

Contract NO. df 05/2026

Category a: supply and delivery of fuel for a period of three years

Category b: appointment of a panel of service providers to supply and deliver petroleum

Products for a period of three years

1. Requirements of the contract

Part A: Primary Supplier: Supply and Delivery of Fuel

• The supply and delivery contract will be for a period of three (3) years from the date of

acceptance of the appointment letter.

Part B: Secondary Supplier (Panel Basis): The dispensation of petroleum products from a registered

petroleum distributor site within the Ladysmith CBD area and a panel of service providers to supply oil

lubricants.

• The Dispensation of the contract for petroleum products, as and when needed, will be for a period

of three (3) years from the date of acceptance of the appointment letter.

• The contract for the Supply and Delivery oil lubricants as and when needed.

2. Payments

Part A: Primary Supplier: Supply and delivery of Petroleum Products

Payment for Fuel will be made after delivery and as soon as possible after the said delivery and in any

event by no later than (30) days after the submission of a valid invoice.

Part B: Secondary Supplier: (Panel Basis): The dispensation of petroleum products must be from a

registered petroleum distributor site.

Payment for petroleum products will be made after delivery and as soon as possible after the said delivery

and in any event by no later than (30) days after the submission of a valid invoice.

3. Service level agreement

3.1 A service level agreement will be entered into with the successful bidder.

3.2 Negotiations in respect of the service level agreement must be finalised within fourteen (14)

calendar days of receipt of the letter of confirmation by the Municipality for the acceptance by the

successful bidder successful bidder will capture the time frames or performance applying to this contract.

3.3 Should no consensus be reached within fourteen (14) calendar days of finalizing the Service Level

Agreement (SLA), the Municipality will be entitled to:

i) cancel its acceptance of the bid, or

ii) extend the negotiation period without prejudice to any of its other rights in

terms of this contract or common law.

4. Mandatory objection period

All administrative actions and decisions taken by the Municipality through its officials may

become subject to an appeal process. As such, in terms of Section 49 of the Municipal Supply

Chain Management Regulations No , a period of fourteen (14) days will be set aside

to allow for the submission of appeals against the award/ process of making the award to a

particular bidder by any interested party. Except in scenarios where the decision of a duly appointed

appeal panel sets aside the appointment of the successful bidder as the service provider for this

contract, the appointment will then be confirmed by the municipality in writing.

5. Price

Part A: Primary Supplier of Petroleum Products

5.1. Supply of Fuel:

The Price reduction on the regulated cost for fuel quoted by the successful bidder shall be fixed for the

duration of the contract. The Price reduction shall be applied against the gazette/ regulated amount for the

provision of fuel as at the date of order of fuel by the Municipality. Your price will be measured monthly

against the local market price.

Part B: Secondary Supplier: (Panel Basis): The dispensation of petroleum products must be from a

registered petroleum distributor site.

5.2. Supply of Oil:

The price quoted shall be determined by the CPIX for the supply and delivery of oil and will be implemented

as per the Municipality’s Supply Chain Management Policy.

5.3. Dispensation of Fuel:

The Price reduction on the regulated cost for fuel quoted by the successful bidder shall be fixed for the

duration of the contract. The Price reduction shall be applied against the gazette/ regulated amount for the

provision of fuel as at the date of order of fuel by the Municipality. Prices will be measured monthly against

the local market price.

6. Bid validity

This bid shall not be withdrawn during a period of one hundred and twenty (120) days from the date

on which it is to be lodged and it may be accepted at any time during that period.

7. Bid compliance

The Bid must comply with the following: VAT must be indicated separately.

• This bid or part thereof may not be ceded.

8. Meetings

Progress meetings will be held as and when required by both parties. This item is discussed further in

the Service Level Agreement.

Returnable documents: issued documents must be returned in the form and order issued. Also includes mandatory documents listed (municipal statements, JV agreement, CSD report, B-BBEE certificate).

Bidders must be registered on the Central Supplier Database (CSD). Must provide a valid SARS tax clearance (tax matters in order). Must not have municipal rates and services charges in arrears. Must provide a BBBEE certificate or sworn affidavit. Must attend the compulsory briefing session. Must score at least 80% on functionality. Category A: must provide a branded franchise wholesale and retail license; provide six reference letters for similar work above R800,000 (5 points each); provide bank statement or letter of intent showing financial capacity (R1.5m–R200k tiers). Category B: must be registered with the National Energy Regulator of South Africa (NERSA); provide four reference letters for similar work above R50,000 (10 points each) or three months filling statements with turnover of R250,000 per month; provide bank statement or letter of intent (R300k–R10k tiers). Must submit proof of previously completed projects; failure to do so invalidates the bid. Must complete and sign all mandatory forms including SBD 4 (Declaration of Interest), SBD 6.1 (Preference Points Claim), SBD 7.2 (Contract Form), SBD 8 (Past SCM Practices), SBD 9 (Independent Bid Determination), and Authority to Sign.

Part A: Primary Supplier of Petroleum Products

The Bidder is required to attend to:

1. The supply of 40 000 – 60 000 litres of diesel within two (2) working days from receipt of an order.
2. The supply of 10 000 -- 23 000 litres of unleaded petrol within two (2) working days from receipt of

order.

3. Fuel dispensers must be calibrated every THREE (3) months and proof of calibration must be

furnished.

4. The fuel dispensers have to be integrated/ interfaced with the Municipal Fleet Management

System and the fuel system (smart fuel) to ensure that all transactions can be recorded.

5. Diesel to contain a sulphur content of not being more than 50 parts per million, low Sulphur,

and must conform to SANS specifications.

6. Petrol unleaded to be 95 octane lead free and must conform to SANS specifications.
7. The estimated fuel usage: Diesel estimate usage per month +- 45 000 litres

: Unleaded Petrol estimate usage per month +- 15 000 litres.

.

Part B: Supply of Oil

1. Supply of engine oil in 210 litre drums (15W40).
2. Supply of engine oil in 500ml cans (15W40).
3. Supply of hydraulic oil in 210 litre drums.
4. Supply of 500 ml ATF-transmission fluid .
5. Supply of ATF- transmission fluid in 20 litre drums.
6. Supply of grease in 15kg containers.
7. Supply of 1 litre antifreeze.
8. Supply of 1 litre cutter bar oil.
9. Supply of Gearbox oil in 210 litre drums.
10. Supply two stroke oil in 20 litre drums.
11. Supply 500ml two stroke oil.
12. Supply 500 ml brake fluid.

All oils and lubricants that is supplied has to be SABS/SANS approved and no recycled products

will be accepted. Please note that the Municipality is not limited to the above-mentioned Oil

Lubricants only. Any Vehicle/ machinery related oils will be ordered using this Bid.

Alfred duma local municipality

Department budget and treasury

Contract NO. df 05/2026

Category a: supply and delivery of fuel for a period of

Three years

Category b: appointment of a panel of service providers to

Supply and deliver petroleum products for a period of

Three years

Bids are hereby invited from suitably qualified and experienced organisations/consortia in terms of Section 83 of the Local

Government: Municipal Systems Act, Act (as amended) and Sections 110 and 112 of the Local Government:

Municipal Finance Management Act, Act for the following DF 05/2026: Category A: Supply and Delivery of Fuel for

a Period of Three (3) Years. Category B: Appointment of a Panel of Service Providers to Supply and Deliver Petroleum Products

for a Period of Three (3) Years.

Department budget and treasury

Contract NO. df 05/2026

Service required

1. Price

Part A: Supply, installation, commission and maintenance of three (3) electronic fuel

dispensers to dispense unleaded petrol and diesel from three (3) underground tanks as

well as the supply and delivery of unleaded petrol and diesel at the premises of the

Municipality

Provision of equipment and supply of fuel

NO. description price per litre cents below local

Pump price

1 Supply of unleaded petrol

per litre

2 Supply of diesel 50 ppm

per litre

PART B: Secondary Supplier (Panel Basis): Supply of Fuel and

Oil

Part B: Panel of Service Providers to Supply Oil

NO. description

Supply of engine oil in 210 litre drums (15W40).

2 Supply of engine oil in 500ml cans (15W40).

Supply of hydraulic oil in 210 litre drums.

Supply of 500 ml ATF-transmission fluid.

Supply of ATF- transmission fluid in 20 litre drums.

6 Grease 15kg container.

Supply of 1 litre antifreeze.

8 Supply of 1 litre cutter bar oil.

Supply of Gearbox oil in 210 litre drums.

Supply two stroke oil in 20 litre drums.

Supply of 500ml two stroke oil.

Supply of 500 ml brake fluid.

NB: The Municipality is not restricted to the above oils only. Any vehicle, heavy plant, machinery

and small plant related oils will be purchased using this Bid.

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 SARS must have certified that the tax matters of the preferred bidder are in order.

32.4. No contract shall be concluded with any bidder whose municipal rates and taxes and municipal services

charges are in arrears.

CSD Report and BBBEE Certificate/Sworn Affidavit

Central Supplier Database and also

Central Supplier Database (CSD)

Joint Venture Agreement if the company has entered into a joint venture and specifying the name of the signatory in the JV

Appointment Letters of work of a

appointment letters

appointment letter

B-BBEE Details: UDGET AND TREASURY

Bid NO. df 05/2026: category a: supply and delivery of fuel for a period of three (3) years.

Category b: appointment of a panel of service providers to supply and deliver petroleum

Products for a period of three (3) years.

Evaluation criteria

1. Acceptable bids will be evaluated by using a system that awards points on the basis of the 80/20 preferential

points system of which 80 points is for price and 20 points is for Ownership as a Specific Goal.

2. Race (HDI) 5/20- Ownership verification will be conducted in line with the Central Supplier Database and also

by the BBBEE scorecard attributes and

3. RDP Goals 15/20- the bidding company to prove that it is located in the Alfred Duma Local municipal area.

Bid documents are obtainable from Thursday 27 August 2026.

Functionality criteria

Part a: primary supplier: supply and delivery of fuel

No Description Items Maximum Bid Evaluation Page Ref. No.

Potential Score Committee Scores

1 Provide a branded Franchise wholesale and 30

retail license.

2 Provide six (6) Reference Letters and 30

Orders/Appointment Letters of work of a

similar nature, above R800 000 in any

sphere of government or private sector.

(5) Points per reference letter.

Attach orders or appointment letters

AND reference letters

3 Bank statement or letter of intent from a 40

registered financial institute.

R1million- R1.5million = 40

R700 000- r999 999=30

R400 000- r699 999=20

R200 000- r399 999=10

Total scored 100

The following is applicable:

• Bidders need to score a minimum of 80% to be eligible for the second round of evaluation.

Part b: secondary supplier (panel basis): the dispensation of petroleum products from a

Registered petroleum distributor site and supply and delivery of oil lubricants

No

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 nonrefundable fee for documents

may be charged.

3.2. Invitations to bid are usually published in locally distributed news media and on the

municipality/municipal entity website.

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.

24.1. When, after the date of bid, provisional payments are required, or anti-dumping 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 favorable difference shall on demand

be paid forthwith by the supplier to the purchaser or the purchaser may deduct such amounts from

moneys (if any) which may otherwise be due to the supplier in regard to goods 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.

become subject to an appeal process. As such, in terms of Section 49 of the Municipal Supply

Chain Management Regulations No , a period of fourteen (14) days will be set aside

to allow for the submission of appeals against the award/ process of making the award to a

particular bidder by any interested party. Except in scenarios where the decision of a duly appointed

appeal panel sets aside the appointment of the successful bidder as the service provider for this

contract, the appointment will then be confirmed by the municipality in writing.

10.1 Deliver any fuel ordered within two (2) working days of receipt of an order.

10.2 The Service Provider must submit the delivery procedure that must be adhered to on site during

the delivery of fuel.

10.3 The Service Provider must submit the emergency response plan that must be adhered to on site

during the delivery of fuel under emergency circumstances.

10.4 The Service Provider must submit the pollution clean-up plan that must be adhered to on site during

the quarterly servicing of tanks.

10.5 The Service Provider will be requested to drain water and remove sand from the tanks on a quarterly

basis.

10.6 Diesel must be graded at 10ppm or lower and a loading certificate must be provided when

delivering.

Part B: Secondary Supplier: (Panel Basis): The dispensation of petroleum products from a

registered petroleum distributor site.

1. The supply of 40 000 – 60 000 litres of diesel within two (2) working days from receipt of an order.
2. The supply of 10 000 -- 23 000 litres of unleaded petrol within two (2) working days from receipt of

order.

3. Fuel dispensers must be calibrated every THREE (3) months and proof of calibration must be

furnished.

16. Payment
17. Prices
18. Variation orders
19. Assignment
20. Subcontracts
21. Delays in the supplier’s performance
22. Penalties
23. Termination for default
24. Anti-dumping and countervailing duties and rights
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. Transfer of contracts
34. Amendments of contracts
35. 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 recognized 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 of 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 consignees 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 goods are so delivered and a valid receipt is obtained.

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 is 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 in order to influence a procurement process

or the execution of a contract to the detriment of any bidder, and includes collusive practice among

bidders (prior to 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 goods covered by the bid will be manufactured.

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

provided that local manufacture does take place.

1.18. “Manufacture” means the production of products in a factory using labor, 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 organization 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 those 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. “Supplier” means the successful bidder who is awarded the contract to maintain and administer the

required and specified service(s) to the State.

1.26. “Tort” means in breach of contract.

1.27. “Turnkey” means a procurement process where one Consultant assumes total responsibility for all

aspects of the project and delivers the full end product / service required by the contract.

1.28. “Written” or “in writing” means hand-written in ink or any form of electronic or mechanical writing.

2. Application

2.1. These general conditions are applicable to all bids, contracts and orders including bids for functional

and professional services (excluding professional services related to the building and construction

industry), 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 goods, services

or works.

2.3. Where such special conditions of contract are in 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 nonrefundable fee for documents

may be charged.

3.2. Invitations to bid are usually published in locally distributed news media and on the

municipality/municipal entity website.

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

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.

6.2. When a supplier developed documentation / projects for the municipality / municipal entity, the

intellectual, copy and patent rights or ownership of such documents or projects will vest in the

municipality / municipal entity.

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.

8. Inspections, tests and analysis

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

8.2. If it is a bid condition that goods to be produced or services to be rendered should at any stage be subject

to inspections, tests and analyses, the bidder or contractor’s premises shall be open, at all reasonable

hours, for inspection by a representative of the purchaser or organization acting on behalf of the purchaser.

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 goods 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 goods or services referred to in clauses 8.2 and 8.3 do not comply with the contract

requirements, irrespective of whether such goods or services are accepted or not, the cost in

connection with these inspections, tests or analyses shall be defrayed by the supplier.

8.6. Goods 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 goods may on or after delivery be inspected, tested or analyzed and may be rejected if

found not to comply with the requirements of the contract. Such rejected goods 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 goods, which do comply with the requirements of the contract. Failing such removal

the rejected goods shall be returned at the suppliers cost and risk. Should the supplier fail to provide the

substitute goods forthwith, the purchaser may, without giving the supplier further opportunity to substitute

the rejected goods, purchase such goods 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 22 of GCC.

9. Packaging

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, and in any subsequent instructions ordered by the purchaser.

10. Delivery and documents

10.1. Delivery of the goods and arrangements for shipping and clearance obligations shall be made by the

supplier in accordance with the terms specified in the contract.

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.

12. Transportation

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

13. Incidental Services

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

if any:

(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, the supplier may be required to provide any or all of the following materials, notifications,

and information pertaining to 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:

(i) advance notification to the purchaser of the pending termination, in sufficient time to permit the

purchaser to procure needed requirements; and

(ii) 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 design

and/or material is required by the purchaser’s specifications) 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 (24) 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 (36) months after the date of shipment from the port or place of loading in the source

country, whichever period concludes earlier, unless specified otherwise.

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

15.4. Upon receipt of such notice, the supplier shall, within the period specified 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, 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.

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

upon fulfillment 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 Rands unless otherwise stipulated.

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, with the exception of any price adjustments

authorized or in the purchaser’s request for bid validity extension, as the case may be.

18. Variation orders

18.1. In cases where the estimated value of the envisaged changes in purchase does not vary more than

15% of the total value of the original contract, the contractor may be instructed to deliver the goods or

render the services as such. In cases of measurable quantities, the contractor may be approached to

reduce the unit price, and such offers may be accepted provided that there is no escalation in price.

19. Assignment

l

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 these contracts 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. Delivery of the goods and performance of services shall be made by the supplier in accordance with the

time 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, it’s 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 contract.

21.3. 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 goods are required, or the supplier’s services are not readily available.

21.4. 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 22.2 without the application of

penalties.

21.5. Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall, without

canceling the contract, be entitled to purchase goods 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 of 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, and 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.

24. Antidumping and countervailing duties and rights

24.1. When, after the date of bid, provisional payments are required, or anti-dumping 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 favorable difference shall on demand

be paid forthwith by the supplier to the purchaser or the purchaser may deduct such amounts from

moneys (if any) which may otherwise be due to the supplier in regard to goods 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.

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. 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 for goods delivered and / or

services rendered according to the prescripts of the contract.

28. Limitation of Liability

28.1. Except in cases of criminal negligence or willful 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.

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

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 SARS must have certified that the tax matters of the preferred bidder are in order.

32.4. No contract shall be concluded with any bidder whose municipal rates and taxes and municipal services

charges are in arrears.

33. Transfer of contracts

33.1. The contractor shall not abandon, transfer, cede assign or sublet a contract or part thereof without the

written permission of the purchaser.

34. Amendment of contracts

34.1. No agreement to amend or vary a contract or order or the conditions, stipulations or provisions thereof

shall be valid and of any force unless such agreement to amend or vary is entered into in writing and

signed by the contracting parties. Any waiver of the requirement that the agreement to amend or vary

shall be in writing, shall also be in writing.

35. Prohibition of restrictive practices

35.1 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.

35.2 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 section 59 of the Competition Act No 89 0f 1998.

35.3 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.

Department budget and treasury

Department budget and treasury

Contract NO. df 05/2026

Category a: supply and delivery of fuel for a period of

Three years

Category b: appointment of a panel of service providers to

Supply and deliver petroleum products for a period of

Three years

. Invitation to bid 3

2. Conditions of bid 5

3. General conditions of contract 8

4. Special conditions of contract 20

5. Specification of contract 24

6. Forms to be completed by the bidder 28

7. Form of acceptance and declaration 29

8. Tax clearance certificate (mbd 2) 32

9. Declaration of interest (mbd4) 34

10. Procurement documents 37

A) preference points claim form (mbd 6.1) 38

B) contract form –purchase for

Goods/services (mbd 7.2) 49

C) declaration of bidder’s past supply chain

Management practices (mbd 8) 51

D) certificate of independent

Bid determination (mbd 9) 53

E) particulars of bidder 57

F) enquiry contact details 59

8. Pricing schedule 62
9. Check list 66

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 recognized 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 of 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 consignees 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 goods are so delivered and a valid receipt is obtained.

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 is 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 in order to influence a procurement process

or the execution of a contract to the detriment of any bidder, and includes collusive practice among

bidders (prior to 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

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

provided that local manufacture does take place.

1.18. “Manufacture” means the production of products in a factory using labor, 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 organization 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 those 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. “Supplier” means the successful bidder who is awarded the contract to maintain and administer the

required and specified service(s) to the State.

1.26. “Tort” means in breach of contract.

1.27. “Turnkey” means a procurement process where one Consultant assumes total responsibility for all

aspects of the project and delivers the full end product / service required by the contract.

1.28. “Written” or “in writing” means hand-written 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.

6.2. When a supplier developed documentation / projects for the municipality / municipal entity, the

intellectual, copy and patent rights or ownership of such documents or projects will vest in the

municipality / municipal entity.

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.

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

if any:

(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, the supplier may be required to provide any or all of the following materials, notifications,

and information pertaining to 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:

(i) advance notification to the purchaser of the pending termination, in sufficient time to permit the

purchaser to procure needed requirements; and

(ii) 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. The supplier further warrants that all goods supplied under this

contract shall have no defect, arising from design, materials, or workmanship (except when the design

and/or material is required by the purchaser’s specifications) 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 (24) 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 (36) months after the date of shipment from the port or place of loading in the source

country, whichever period concludes earlier, unless specified otherwise.

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

15.4. Upon receipt of such notice, the supplier shall, within the period specified 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, 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 these contracts 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. Delivery of the goods and performance of services shall be made by the supplier in accordance with the

time 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, it’s 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 contract.

21.3. 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 goods are required, or the supplier’s services are not readily available.

21.4. 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 22.2 without the application of

penalties.

21.5. Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall, without

canceling the contract, be entitled to purchase goods 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 of 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, and 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.

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.

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. 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 for goods delivered and / or

services rendered according to the prescripts of the contract.

28.1. Except in cases of criminal negligence or willful 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.

Special conditions: Contract duration three years from acceptance. Payment within 30 days of valid invoice. Service Level Agreement to be entered into; negotiations finalised within 14 days; if no consensus, municipality may cancel or extend. Mandatory objection period of 14 days per Section 49 of Municipal SCM Regulations. Price: fuel price reduction fixed for contract duration, applied against gazetted/regulated amount; oil price determined by CPIX; prices measured monthly against local market. Bid validity 120 days. VAT indicated separately; bid may not be ceded. Meetings as required. Returnable documents must be returned in original form and order. Delivery: fuel within 2 working days; submit delivery procedure, emergency response plan, pollution clean-up plan; drain water/remove sand quarterly; diesel 10ppm or lower with loading certificate. Maintenance (primary supplier): service/maintain equipment at no cost, attend repairs within 24 hours, pressure tests bi-annually. No waiver of conditions. Fuel system: link to municipal Fleet Management and Munsoft systems within one month (currently Smart fuel).

Mandatory documents: up-to-date municipal rates and service charges and water statements; Joint Venture Agreement if applicable; CSD report and B-BBEE certificate/sworn affidavit. Service provider must be registered on Central Supplier Database (CSD). Proof of previously completed projects required; failure renders bid invalid.

Evaluation criteria: 80/20 preferential points system (80 points for price, 20 points for Ownership as a Specific Goal). Ownership verification via CSD and B-BBEE scorecard. RDP Goals 15/20: bidder must prove location in Alfred Duma Local municipal area. Functionality criteria: Part A (Primary Supplier) requires branded franchise wholesale/retail license (30 points), six reference letters/orders for similar work above R800,000 (30 points, 5 per letter), bank statement/letter of intent from registered financial institute (40 points, tiered by amount). Minimum 80% to qualify for second round. Part B (Secondary Supplier) requires NERSA registration (30 points), four reference letters/orders for similar work above R50,000 (30 points, 10 per letter) or service station filling statements with R250,000 monthly turnover (10 per month), bank statement/letter of intent (40 points, tiered). Minimum 80% to qualify.