Provision of inmate communication system – 15-Year contract – department of correctional services (gauteng)

The tender is for the appointment of service provider(s) to provide an Inmate Communication System (ICS) to the Department of Correctional Services. The contract period is fifteen (15) years, reviewable every five (5) years. Bidders must use the accompanying information to formulate their pricing proposals.

Closing date: 14 September 2026, closing time: 11:00.

Returnable documents: SBD 3.3 (Pricing Schedule – Professional Services) must be completed, signed, and submitted. Bidders must indicate the region(s) for which they bid; a separate pricing schedule is required for each region. The offer must remain valid for 180 days from the closing date.

No eligibility criteria specified in the available document. Pricing will be compared on the call rate per minute for each network and the management fee percentage.

The scope is the appointment of service provider(s) for the provision of an Inmate Communication System (ICS) to the Department of Correctional Services for a period of fifteen (15) years, with the contract reviewable every five (5) years. Bidders must provide a detailed breakdown of call rate cards for all networks (Vodacom, MTN, Cell C, Telkom, and Others).

Pricing must be submitted on SBD 3.3 (Pricing Schedule – Professional Services). Bidders must provide call rates per minute for Vodacom, MTN, Cell C, Telkom, and Others, and a management fee percentage. Rates must be quoted in RSA currency and include all applicable taxes (15% VAT unless exempt). Bidders must state whether rates are firm for the full contract period; if not, provide the basis for adjustments (e.g., CPI). A separate pricing schedule is required for each region bid.

Pricing must be in RSA currency and include all applicable taxes, including 15% VAT (unless the bidder is not required to register for VAT). The pricing schedule requires: call rate per minute to Vodacom, MTN, Cell C, Telkom, and Others; a management fee percentage; and a statement on whether rates are firm for the full contract period. If rates are not firm, bidders must provide the basis for adjustments (e.g., CPI).

Provision of an Inmate Communication System (ICS) to the Department of Correctional Services for a period of fifteen (15) years (contract reviewable every five (5) years). Bid number HO3/2026.

{"closingDate":"14 September 2026","closingTime":"11h00 am","briefingSession":"{"date":"27 August 2026","time":"11h00 am","venue":"e: 27 August 2026","is_compulsory":false}"}

Non-compulsory virtual briefing session on 27 August 2026, 11h00-13h30. Meeting link: https://teams.microsoft.com/meet/331035857158270?p=8CCQGYtRu5Et1Ebd9t, Meeting ID: 3331 035 857 158 270, Passcode: jW9GH26V.

{"name":"__________________________________________","email":"[email protected]","phone":"0358571582","department":"OF CORRECTIONAL","address":"es. One envelope (first envelope) with the bid proposal hard"}

Documents checklist: CSD registration report; implementation plan; certified ID copies of directors/members/shareholders; valid Individual Electronic Communications Network Service (I-ECNS) licence and/or Individual Electronic Communication Services (I-ECS) issued by ICASA; Service Level Agreement (SLA) outlining service standards, performance measures, reporting requirements and support arrangements; at least two signed reference letters from previous/current clients where bidder installed and maintained a telephone system in the past five years; proposed methodology and roll out plan; company profile including track record, location, completed projects, technical personnel; authorized signatory letter; completed and signed pricing schedule/s with Rate Cards.

Bidders must be registered on the National Treasury Central Supplier Database (CSD) and provide a CSD registration report. Tax compliance is required at award stage (SARS TCS PIN or certificate). Bidders must submit a valid ICASA licence (I-ECNS or I-ECS). Certified copies of identity documents of all directors/members/shareholders must be provided. Bidders must complete and sign SBD 1 (Invitation to Bid), SBD 4 (Bidder's Disclosure), SBD 6.1 (Preference Points Claim), and the POPIA consent form. Failure to submit any mandatory document may lead to disqualification. Bidders must not be persons in the service of the state or have directors who are state employees.

Page number

Section 1 Invitation to Bid 8

Section 2 Bidders Disclosure (SBD 4) 11

Preference Points Claim Form in Terms of The Preferential

Section 3 Procurement Regulations 2022 (SBD 6.1) 14

Consent and Acknowledgement in terms of the Protection of

Section 4 Personal Information Act 2013 (POPIA). 18

Section 5 General Conditions of Contract 22

Section 6 Special Conditions of Contract 34

Section 7 Evaluation Criteria 44

Section 8 Terms of References 52

To be downloaded

Annexure A Site list separately

Pricing Schedule to be downloaded from eTender and DCS website. To be submitted To be downloaded

on a separate envelope and via USB. separately

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Bid NO: HO3/2026

Glossary

3.1 The closing date of the bid will be on 14 September 2026 at 11h00 am and will be valid for a period of one

hundred and eighty (180) days after the closing date.

3.2 Bids must be submitted in 2 sealed envelopes. One envelope (first envelope) with the bid proposal hard

copy (legal binding proposal) clearly marked as original. The name and address of the bidder, the bid number

and closing date must be indicated on the envelope. The proposal must also be submitted on the USB.

3.3 The pricing schedule can be downloaded from eTender and DCS website. A completed and signed pricing

schedule must be submitted on a separate sealed envelope (second envelope).

3.4 The bid must be addressed to the Department of Correctional Services and be deposited into the tender box

not later than the closing date and time of the bid. The tender box is located at POYNTONS-BUILDING WEST

Block 124 w.F. Nkomo street (c/o sophie de bruyn and w.F. Nkomo street) pretoria.

Tax compliance status system pin code from the south african revenue service (SARS) and if not

Tax compliance requirements

Tax compliance status (tcs) pin may be made via e-filing through

Tax Compliance information from SARS

Tcs pin is available but the bidder is registered on the central supplier

Csd number

Csd number must be provided

Central Supplier Database (CSD) prior to submitting their bid proposal

Central Supplier Database registration report (CSD)

Central supplier database (csd), a csd number must be provided

1. Central Supplier Database registration report (CSD)
2. Certified copies of Identity Documents of Directors/Members/Shareholders
3. Completed and signed pricing schedule/s with Rate Cards

4.5 All bid enquiries must be communicated via email provided on SBD 1 by no later than 09 September 2026.

thereof and minimise the risk of disqualification.

3.3 The pricing schedule can be downloaded from eTender and DCS website. A completed and signed pricing

4.2 It is the responsibility of bidders to ensure that they are registered on the National Treasury Central Supplier

Database (CSD) prior to submitting their bid proposal.

Points Allocation: 3 points

B-BBEE Details: mpleted

mechanically, e.g. by means of a typewriter/computer are deemed to have been

completed in original ink. A signature/initial must be made by hand in black ink. Bidders

must not use pencil to complete or sign the bid document as this will lead to a

disqualification.

Service Provider Means any individual or entity that is contracted by the Department of Correctional

Services to render goods or services.

Specific Goals Means specific goals as contemplated in section 2 (1) (d) of the Preferential Procurement

Policy Framework Act, 2000.

Original Bid Original document signed in ink

B-BBEE Broad-Based Black Economic Empowerment

DCS Department of Correctional Services

DTI Department of Trade and Industry

EME Exempt Micro Enterprises

GCC General Conditions of Contract

HDI Historically Disadvantaged Individual

IP Intellectual Property

NIPP National Industrial Participation Programme

NT National Treasury

PPPFA Preferential Procurement Policy Framework Act

PPR 2022 Preferential Procurement Regulations 2022

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QSE Qualifying Small Enterprise

RDP Reconstruction and Development Programme

RoE Rate of Exchange

SABS South African Bureau of Standards

SANAS South African National Accreditation System

SANS South African National Standards

SARS South African Revenue Service

SBD Standard bidding document

SCC Special Conditions of Contract

SCM Supply Chain Management

SLA Service Level Agreement

TCC Tax Clearance Certificate (Pin)

VAT Value-Added Tax

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Bid NO: HO3/2026

Section 1

Invitation to bid sbd1

You are hereby invited to bid for requirements of the department of correctional

Services: all regions

14 september closing

Bid number: HO3/2026 closing date: 2026 time: 11h00 AM

Description

Bidders must be registered on the National Treasury Central Supplier Database (CSD) prior to submitting their bid proposal. Successful bidders must be tax compliant at award stage in line with National Treasury instruction note /2018.

Pt−Pmin

Ps= 80(1− )

Pmin

Where

Ps = Points scored for price of tender under consideration

Pt = Price of tender under consideration

Pmin = Price of lowest acceptable bid or offer

NB: This tender will be evaluated on 80/20 price points.

4. Points awarded for specific goals

4.1. In terms of Regulation 5(2) of the Preferential Procurement Regulations, preference points must be

awarded for specific goals stated in the tender. For the purposes of this tender the bidder will be allocated

points based on the goals stated in table 1 below and MUST be supported by proof/ documentation stated

in the conditions of this tender:

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

Number of points Number of points claimed

The specific goals allocated (80/20 system) allocated

points in terms of this

(80/20 system) tender

Women 7

Youth 6

Black 5

People living with disabilities 2

The following documentary proof must be submitted with the bid document to claim for preference points:

Women: An original and valid B-BBEE Certificate or a certified copy thereof issued by a verification agency

accredited by SANAS, or an affidavit as per the DTI prescribed template and/or SAPS, whichever is applicable to

the bidder. The affidavit must be signed by a Commissioner of Oaths and clearly indicate the date of signing. The

affidavit or certificate must clearly indicate the percentage ownership 51% or more held by women in the

bidding company.

Black: An original and valid B-BBEE Certificate or a certified copy thereof issued by a verification agency

accredited by SANAS, or an affidavit as per the DTI prescribed template and/or SAPS, whichever is applicable to

the bidder. The affidavit must be signed by a Commissioner of Oaths and clearly indicate the date of signing. The

affidavit or certificate must clearly indicate the percentage black ownership 51% or more in the bidding

company.

Youth : An original and valid B-BBEE Certificate or a certified copy thereof issued by a verification agency

accredited by SANAS, or an affidavit as per the DTI prescribed template and/or SAPS, whichever is applicable to

the bidder. The affidavit must be signed by a Commissioner of Oaths and clearly indicate the date of signing. The

affidavit or certificate must clearly indicate the percentage youth ownership 51% or more in the bidding

company.

Disability: Medical certificate signed off by the doctor. The medical certificate must be accompanied by an affidavit

signed off by SAPS confirming 51% more ownership for disabled persons.

Failure on the part of a bidder to submit proof or documentation required in terms of this tender to claim points for

specific goals, will be interpreted to mean that preference points for specific goals are not claimed.

5. Declaration with regard to company/firm

5.1. Name of company/firm...............................................................................

5.2. Company registration number: .....................................................................

5.3. Type of company/ firm

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 Partnership/Joint Venture / Consortium

 One-person business/sole propriety

 Close corporation

 Public Company

 Personal Liability Company

 (Pty) Limited

 Non-Profit Company

 State Owned Company

[Tick applicable box]

5.4. I, the undersigned, who is duly authorised to do so on behalf of the company/firm, certify that the points

claimed, based on the specific goals as advised in the tender, qualifies the company/ firm for the

preference(s) shown and I acknowledge that:

i) The information furnished is true and correct;

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

paragraph 1 of this form;

iii) In the event of a contract being awarded as a result of points claimed as shown in paragraphs 1.4

and 4.2, the contractor may be required to furnish documentary proof to the satisfaction of the organ

of state that the claims are correct;

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

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

–

(a) disqualify the person from the tendering process;

(b) recover costs, losses or damages it has incurred or suffered 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) recommend that the bidder or contractor, its shareholders and directors, or only

the shareholders and directors who acted on a fraudulent basis, be restricted from

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

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

(e) forward the matter for criminal prosecution, if deemed necessary.

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

Signature(s) of bidder (s)

Surname and name: ................................................................

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

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

.................................................................SECTION 4

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Section 4

Consent and acknowledgement in terms of the protection of personal information

Act 2013 (popia)

This section sets out how personal information will be collected, used and protected by Department of

Correctional Services hereinafter referred to as “department of correctional services, as required by the Protection

of Personal Information Act. The use of the words “the individual” for the purposes of this document shall be a

reference to any individual (bidder) communicating with DCS and/or concluding any agreement, registration or

application, with the inclusion of each of those individuals referred to or included in terms of such agreement,

registration or application.

1. What is personal information?

The personal information that department of correctional services requires relate to names and surnames, birth

dates, identity numbers, passport numbers, demographic information, education information, occupation

information, health information, addresses, memberships, and personal and work email and contact details.

2. What is the purpose of the collection, use and disclosure (the processing) of personal information?

Department of correctional services is legally obligated to collect, use and disclose personal information for the

purposes of:

2.1 reporting initiatives to the DCS ;

2.2 reporting to National Treasury all contracts awarded;

2.3 obtaining information related to Tax Compliance information from SARS;

2.4 verifying information on the National Treasury database of defaulters;

2.5 evaluating and processing applications for registration on the database;

2.6 evaluation of quotations and/or bids;

2.7 compiling statistics and other reports;

2.8 providing personalised communications;

2.9 validation of information

2.10 complying with the law; and/or

2.11 For a purpose that is ancillary to the above. Personal information will not be processed for a purpose other

than what is identified (the purpose) above without obtaining consent beforehand.

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3. How will DCS process personal information?

The DCS will only collect personal information for the purpose as stated above. Information will be collected in

the following manner:

3.1 directly from the individual;

3.2 from service providers who provided with services or goods to department of correctional services;

3.3 from department of correctional services own records relating to previous supply of services or goods;

and/or

3.4 from a relevant public or equivalent entity.

4. To whom will personal information be disclosed?

The personal information may be disclosed to other relevant public or other entities on whose behalf we act as

intermediaries, other third parties referred to above in relation to the purpose or who are sources of personal

information, service providers such as professional bodies who operate across the borders of this country (trans

border flow of information) where personal information must be sent in order to provide the information and/or

services and/or benefits requested or applied for. In the event of another party/ies acquiring all of or a portion of

DCS mandate or functions, personal information will be disclosed to that party but they will equally be obliged as

we are, to protect personal information in terms of this document and other applicable documents.

5. Consent and Permission to process personal information:

I hereby agree with the request and provide authorisation to the DCS to process the personal information provided

for the purpose stated:

5.1 I understand that withholding of or failure to disclose personal information will result in department of

correctional services being unable to perform its functions and/or any services or benefits I may require

from department of correctional services

5.2 Where I shared personal information of individuals other than myself with department of correctional

services I hereby provide consent on their behalf to the collection, use and disclosure of their personal

information in terms of this personal information policy and I warrant that I am authorised to give this

consent on their behalf.

5.3 To this end, I indemnify and hold department of correctional services not responsible in respect of any

claims by any other person on whose behalf I have consented, against department of correctional services

should they claim that I was not so authorised.

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5.4 I understand that in terms of POPIA and other laws of the country, there are instances where my express

consent is not necessary in order to permit the processing of personal information, which may be related

to police investigations, litigation or when personal information is publicly available.

5.5 I will not hold department of correctional services responsible for any improper or unauthorised use of

personal information that is beyond its reasonable control.

6. Rights regarding the processing of personal information:

6.1 The individual may withdraw consent to the processing of personal information at any time, and should

they wish to do so, must provide department of correctional services with reasonable notice to this effect.

Please note that withdrawal of consent is still subject to the terms and conditions of any contract that is in

place. Should the withdrawal of consent result in the interference of legal obligations, then such withdrawal

will only be effective if department of correctional services agrees to same in writing. department of

correctional services specifically draws to the attention that the withdrawal of consent may result in it being

unable to provide the requested information and/or services and/or financial or other benefits.

6.2 In order to withdraw consent, please contact the department of correctional services /SCM.

6.3 A copy of the full department of correctional services policy is available.

6.4 Individuals are encouraged to ensure that where personal information has changed in any respect to notify

department of correctional services so that our records may be updated. department of correctional

services will largely rely on the individual to ensure that personal information is correct and accurate.

6.5 The individual has the right to access their personal information that department of correctional services

may have in its possession and are entitled to request the identity of which third parties have received

and/or processed personal information for the purpose. Please note however, that any request in this

regard may be declined if:

6.6 the information comes under legal privilege in the course of litigation,

6.7 the disclosure of personal information in the form that it is processed may result in the disclosure of

confidential or proprietary information,

6.8 giving access may cause a third party to refuse to provide similar information to department of correctional

services,

6.9 the information was collected in furtherance of an investigation or legal dispute, instituted or being

contemplated,

6.10 the information as it is disclosed may result in the disclosure of another person’s information,

6.11 the information contains an opinion about another person and that person has not consented, and/or

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Bid NO: HO3/2026

6.12 the disclosure is prohibited by law.

Signature bidder:

Name: _________________________ Date:_________________________

Signature:________________________

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Bid NO: HO3/2026

Section 5

General conditions of contract

1. Definitions 1. 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 supplies 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.

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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 supplies 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 labour,

materials, components and machinery and includes other related value-

adding activities.

1.19 “Order” means an official written order issued for the supply of goods or

works or the rendering of a service.

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

documents.

1.21 “Purchaser” means the 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 ancillaries to the supply of the

goods, such as transportation and any other incidental services, such as

installation, commissioning, provision of technical assistance, training,

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catering, gardening, security, maintenance and other such obligations of

the supplier covered under the contract.

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

or mechanical writing.

2. Application 2.1 These general conditions are applicable to all bids, contracts and orders

including bids for functional and professional services, sales, hiring, letting

and the granting or acquiring of rights, but excluding immovable property,

unless otherwise indicated in the bidding documents.

2.2 Where applicable, special conditions of contract are also laid down to

cover specific supplies, services or works.

2.3 Where such special conditions of contract 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 non-refundable fee for documents may be

charged.

3.2 With certain exceptions, invitations to bid are only published in the

Government Tender Bulletin. The Government Tender Bulletin may be

obtained directly from the Government Printer, Private Bag X85, Pretoria

0001, or accessed electronically from www.treasury.gov.za

4. Standards 4.1 The goods supplied shall conform to the standards mentioned in the

bidding documents and specifications.

5. Use of 5.1 The supplier shall not, without the purchaser’s prior written consent,

contract disclose the contract, or any provision thereof, or any specification, plan,

documents drawing, pattern, sample, or information furnished by or on behalf of the

and purchaser in connection therewith, to any person other than a person

information; employed by the supplier in the performance of the contract. Disclosure

inspection. 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.

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6. Patent rights 6.1 The supplier shall indemnify the purchaser against all third-party claims of

infringement of patent, trademark, or industrial design rights arising from

use of the goods or any part thereof by the purchaser.

7. Performance 7.1 Within thirty (30) days of receipt of the notification of contract award, the

security successful bidder shall furnish to the purchaser the performance security

of the amount specified in the SCC.

7.2 The proceeds of the performance security shall be payable to the

purchaser as compensation for any loss resulting from the supplier’s failure

to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the

contract, or in a freely convertible currency acceptable to the purchaser

and shall be in one of the following forms:

(a) a bank guarantee or an irrevocable letter of credit issued by a

reputable bank located in the purchaser’s country or abroad,

acceptable to the purchaser, in the form provided in the bidding

documents or another form acceptable to the purchaser; or

(b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and

returned to the supplier not later than thirty (30) days following the date of

completion of the supplier’s performance obligations under the contract,

including any warranty obligations, unless otherwise specified in the SCC.

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

tests and

analyses 8.2 If it is a bid condition that supplies to be produced or services to be

rendered should at any stage during production or execution or on

completion be subject to inspection, the premises of the bidder or

contractor shall be open, at all reasonable hours, for inspection by a

representative of the Department or an organization acting on behalf of the

Department.

8.3 If there are no inspection requirements indicated in the bidding documents

and no mention is made in the contract, but during the contract period it is

decided that inspections shall be carried out, the purchaser shall itself

make the necessary arrangements, including payment arrangements with

the testing authority concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3

show the supplies to be in accordance with the contract requirements, the

cost of the inspections, tests and analyses shall be defrayed by the

purchaser.

8.5 Where the supplies or services referred to in clauses 8.2 and 8.3 do not

comply with the contract requirements, irrespective of whether such

supplies or services are accepted or not, the cost in connection with these

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

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8.6 Supplies and services which are referred to in clauses 8.2 and 8.3 and

which do not comply with the contract requirements may be rejected.

8.7 Any contract supplies may on or after delivery be inspected, tested or

analyzed and may be rejected if found not to comply with the requirements

of the contract. Such rejected supplies shall be held at the cost and risk of

the supplier who shall, when called upon, remove them immediately at his

own cost and forthwith substitute them with supplies which do comply with

the requirements of the contract. Failing such removal the rejected

supplies shall be returned at the suppliers cost and risk. Should the

supplier fail to provide the substitute supplies forthwith, the purchaser may,

without giving the supplier further opportunity to substitute the rejected

supplies, purchase such supplies as may be necessary at the expense of

the supplier.

8.8 The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the

purchaser to cancel the contract on account of a breach of the conditions

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

9. Packing 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.

The packing, marking, and documentation within and outside the

packages shall comply strictly with such special requirements as shall be

expressly provided for in the contract, including additional requirements, if

any, specified in SCC, and in any subsequent instructions ordered by the

purchaser.

10. Delivery and 10.1 Delivery of the goods shall be made by the supplier in accordance with the

documents terms specified in the contract. The details of shipping and/or other

documents to be furnished by the supplier are specified in SCC.

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

11. Insurance 11.1 The goods supplied under the contract shall be fully insured in a freely

convertible currency against loss or damage incidental to manufacture or

acquisition, transportation, storage and delivery in the manner specified in

the SCC.

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

shall be specified in the SCC.

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

services including additional services, if any, specified in SCC:

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(a) performance or supervision of on-site assembly and/or

commissioning of the supplied goods;

(b) furnishing of tools required for assembly and/or maintenance of the

supplied goods;

(c) furnishing of a detailed operations and maintenance manual for each

appropriate unit of the supplied goods;

(d) performance or supervision or maintenance and/or repair of the

supplied goods, for a period of time agreed by the parties, provided

that this service shall not relieve the supplier of any warranty

obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or

on-site, in assembly, start-up, operation, maintenance, and/or repair

of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in the

contract price for the goods, shall be agreed upon in advance by the parties

and shall not exceed the prevailing rates charged to other parties by the

supplier for similar services.

14. Spare parts 14.1 As specified in the SCC, 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 (12) months after the goods, or

any portion thereof as the case may be, have been delivered to and

accepted at the final destination indicated in the contract, or for eighteen

(18) months after the date of shipment from the port or place of loading in

the source country, whichever period concludes earlier, unless specified

otherwise in SCC.

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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

in SCC and with all reasonable speed, repair or replace the defective

goods or parts thereof, without costs to the purchaser.

15.5 If the supplier, having been notified, fails to remedy the defect(s) within the

period specified in SCC, the purchaser may proceed to take such remedial

action as may be necessary, at the supplier’s risk and expense and without

prejudice to any other rights which the purchaser may have against the

supplier under the contract.

16. Payment 16.1 The method and conditions of payment to be made to the supplier under

this contract shall be specified in SCC.

16.2 The supplier shall furnish the purchaser with an invoice accompanied by a

copy of the delivery note 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 Rand unless otherwise stipulated in SCC.

17. Prices 17.1 Prices charged by the supplier for goods delivered and services performed

under the contract shall not vary from the prices quoted by the supplier in

his bid, with the exception of any price adjustments authorized in SCC or

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

18. Contract 18.1 No variation in or modification of the terms of the contract shall be made

amendments except by written amendment signed by the parties concerned.

19. Assignment 19.1 The supplier shall not assign, in whole or in part, its obligations to perform

under the contract.

20. Subcontracts 20.1 The supplier shall notify the purchaser in writing of all subcontracts

awarded under this contract if not already specified in the bid. Such

notification, in the original bid or later, shall not relieve the supplier from

any liability or obligation under the contract

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21. Delays in the 21.1 Delivery of the goods and performance of services shall be made by the

supplier’s supplier in accordance with the time schedule prescribed by the purchaser

performance in the contract.

21.2 If at any time during performance of the contract, the supplier or its

subcontractor(s) should encounter conditions impeding timely delivery of

the goods and performance of services, the supplier shall promptly notify

the purchaser in writing of the fact of the delay, its likely duration and its

cause(s). As soon as practicable after receipt of the supplier’s notice, the

purchaser shall evaluate the situation and may at his discretion extend the

supplier’s time for performance, with or without the imposition of penalties,

in which case the extension shall be ratified by the parties by amendment

of contract.

21.3 No provision in a contract shall be deemed to prohibit the obtaining of

supplies or services from a national department, provincial department, or

a local authority.

21.4 The right is reserved to procure outside of the contract small quantities or

to have minor essential services executed if an emergency arises, the

supplier’s point of supply is not situated at or near the place where the

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

21.5 Except as provided under GCC Clause 25, a delay by the supplier in the

performance of its delivery obligations shall render the supplier liable to

the imposition of penalties, pursuant to GCC Clause 22, unless an

extension of time is agreed upon pursuant to GCC Clause 21.2 without the

application of penalties.

21.6 Upon any delay beyond the delivery period in the case of a supplies

contract, the purchaser shall, without cancelling the contract, be entitled to

purchase supplies of a similar quality and up to the same quantity in

substitution of the goods not supplied in conformity with the contract and

to return any goods delivered later at the supplier’s expense and risk, or to

cancel the contract and buy such goods as may be required to complete

the contract and without prejudice to his other rights, be entitled to claim

damages from the supplier.

22. Penalties 22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the

goods or to perform the services within the period(s) specified in the

contract, the purchaser shall, without prejudice to its other remedies under

the contract, deduct from the contract price, as a penalty, a sum calculated

on the delivered price of the delayed goods or unperformed services using

the current prime interest rate calculated for each day of the delay until

actual delivery or performance. The purchaser may also consider

termination of the contract pursuant to GCC Clause 23.

23. Termination 23.1 The purchaser, without prejudice to any other remedy for breach of

for default contract, by written notice of default sent to the supplier, may terminate

this contract in whole or in part:

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(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.

23.3 Where the purchaser terminates the contract in whole or in part, the

purchaser may decide to impose a restriction penalty on the supplier by

prohibiting such supplier from doing business with the public sector for a

period not exceeding 10 years.

23.4 If a purchaser intends imposing a restriction on a supplier or any person

associated with the supplier, the supplier will be allowed a time period of

not more than fourteen (14) days to provide reasons why the envisaged

restriction should not be imposed. Should the supplier fail to respond

within the stipulated fourteen (14) days the purchaser may regard the

intended penalty as not objected against and may impose it on the

supplier.

23.5 Any restriction imposed on any person by the Accounting Officer/Authority

will, at the discretion of the Accounting Officer/Authority, also be applicable

to any other enterprise or any partner, manager, director or other person

who wholly or partly exercises or exercised or may exercise control over

the enterprise of the first-mentioned person, and with which control over

the first-mentioned person, and with which enterprise or person the first-

mentioned person, is or was in the opinion of the Accounting

Officer/Authority actively associated.

23.6 If a restriction is imposed, the purchaser must, within five (5) working days

of such imposition, furnish the National Treasury, with the following

information:

(i) the name and address of the supplier and/or person restricted by

the purchaser;

(ii) the date of commencement of the restriction

(iii) the period of restriction; and

(iv) the reasons for the restriction

These details will be loaded in the National Treasury’s central database of

suppliers or persons prohibited from doing business with the public sector.

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