Panel of PPE suppliers for gauteng roads and transport (3-Year contract)

Purpose:

• The document outlines general conditions applicable to government bids, contracts, and orders, ensuring bidders are aware of their rights and obligations when doing business with the government.

Submission requirements and disqualification risks:

• Bidders must adhere to the General Conditions of Contract (GCC), which cannot be amended. Special Conditions of Contract (SCC) may supplement or override GCC where applicable.
• Collusive bidding or bid rigging is prohibited under the Competition Act. Evidence of such practices may lead to bid invalidation, contract termination, public sector restrictions (up to 10 years), or damages claims.
• Suppliers must notify the purchaser in writing of any delays, including likely duration and causes. Failure to deliver on time may result in penalties calculated at the current prime interest rate per day of delay or contract termination.
• Pre-bidding testing costs are the bidder’s responsibility.

Scope and standards:

• The tender is for the establishment of a panel of service providers for the supply and delivery of Personal Protective and Safety Equipment (PPE) over a three-year period to the Gauteng Department of Roads and Transport.
• Goods supplied must conform to the standards specified in the bidding documents and SCC.
• The supplier must provide packing sufficient to prevent damage during transit, including resistance to rough handling, extreme temperatures, salt, and precipitation. Packing, marking, and documentation must comply with contract requirements.
• Delivery must comply with contract terms, including shipping documents as specified in the SCC.
• Supplies may be inspected, tested, or analyzed at any stage. Non-compliant supplies will be rejected at the supplier’s cost and risk, and must be replaced or substituted promptly.

Quality assurance and control:

• Goods must conform to the standards specified in the bidding documents and SCC.
• Pre-bidding testing costs are the bidder’s responsibility.
• The purchaser may inspect the supplier’s premises and records at reasonable hours if inspection is a bid condition. If inspections are not initially required but later deemed necessary, the purchaser will arrange and pay for testing.
• If supplies or services fail to meet contract requirements, the supplier bears the cost of inspections, tests, and analyses, regardless of acceptance. Non-compliant supplies may be rejected and must be replaced at the supplier’s cost and risk.
• The purchaser may inspect, test, or analyze supplies after delivery. Rejected supplies must be removed and replaced promptly by the supplier.

Payment and pricing terms:

• Payment methods and conditions are specified in the SCC.
• Suppliers must submit an invoice with a copy of the delivery note and fulfill other contractual obligations to trigger payment.
• Payments will be made in South African Rand (ZAR) within 30 days of invoice submission, unless otherwise stipulated in the SCC.
• Prices quoted in the bid are fixed and cannot be varied, except for adjustments authorized in the SCC or bid validity extensions.
• Performance security (e.g., bank guarantee, irrevocable letter of credit, or cashier’s cheque) must be furnished within 30 days of contract award. The amount and form are specified in the SCC.
• The performance security will be discharged within 30 days of contract completion, including warranty obligations.
• Penalties for late delivery are calculated using the current prime interest rate per day of delay until actual delivery or performance.

Mandatory compliance:

• A valid tax clearance certificate (original) issued by SARS must be submitted prior to bid award. No contract will be concluded with bidders whose tax matters are not in order.
• Suppliers must indemnify the purchaser against third-party claims of patent, trademark, or industrial design infringement arising from the use of supplied goods.
• Suppliers must not disclose contract documents or information without the purchaser’s prior written consent. All non-contract documents remain the purchaser’s property and must be returned upon request.
• The National Industrial Participation Programme (NIPP) applies to contracts subject to NIP obligations, as administered by the Department of Trade and Industry.
• Suppliers must ensure all goods are new, unused, and incorporate recent design and material improvements. A 12-month warranty applies from delivery or 18 months from shipment, whichever is earlier, unless specified otherwise in the SCC.
• Suppliers must maintain full insurance for goods against loss or damage during manufacture, acquisition, transportation, storage, and delivery, as specified in the SCC.

B-BBEE and local content:

• The National Industrial Participation Programme (NIPP), administered by the Department of Trade and Industry, applies to contracts subject to NIP obligations. Compliance with NIPP requirements is mandatory where applicable.

Contract terms and conditions:

• The GCC forms part of all bid documents and cannot be amended. SCC, where applicable, supplements GCC and prevails in case of conflict.
• Contract duration: Three years for the supply and delivery of PPE.
• Contract amendments require written agreement signed by all parties.
• Assignment of obligations is prohibited without the purchaser’s prior written consent.
• Subcontracts must be notified in writing to the purchaser. Notification does not relieve the supplier of liability.
• Termination for default may occur if the supplier fails to deliver goods or perform services within the specified period, fails to meet other obligations, or engages in corrupt or fraudulent practices. The purchaser may procure substitute goods at the supplier’s expense and claim damages.
• Termination for insolvency may occur if the supplier becomes bankrupt or insolvent, with no compensation to the supplier.
• Force majeure events (e.g., wars, floods, epidemics) may exempt the supplier from penalties or termination, provided prompt written notice is given to the purchaser.
• Disputes must first be resolved through mutual consultation, then mediation, and finally in a South African court if unresolved. Parties must continue performing obligations during dispute resolution.
• The supplier’s liability is limited to the contract price, except for criminal negligence, willful misconduct, or patent infringement. Indirect or consequential losses are excluded.
• The contract and all correspondence must be in English and interpreted under South African law.
• Notices must be posted by registered or certified mail (for bid acceptance) or ordinary mail (for other notices).
• Taxes and duties: Foreign suppliers are responsible for all levies outside South Africa. Local suppliers are responsible for all taxes and duties until delivery. A valid tax clearance certificate is mandatory for contract conclusion.
• Anti-dumping and countervailing duties: The State is not liable for additional costs arising from such duties imposed after the bid date. Any reductions in these duties must be refunded to the State.

Special conditions and penalties:

• Delays in performance: Suppliers must notify the purchaser in writing of any delays, including duration and causes. The purchaser may grant extensions with or without penalties. Late deliveries incur penalties calculated at the current prime interest rate per day of delay. The purchaser may also substitute goods at the supplier’s expense or cancel the contract.
• Prohibition of restrictive practices: Collusive bidding or bid rigging is prohibited under the Competition Act. If evidence of such practices is found, the purchaser may refer the matter to the Competition Commission for investigation and penalties. If found guilty, bidders may face bid invalidation, contract termination, public sector restrictions (up to 10 years), or damages claims.
• Restrictions on suppliers found guilty of corrupt or fraudulent practices may be extended to associated enterprises, partners, managers, or directors. The National Treasury maintains a public register of restricted suppliers.