What are the submission requirements for this tender (Ref: IATS 2025/2026/11)?

Returnable Documents: ALFRED DUMA LOCAL MUNICIPALITY DEPARTMENT TECHNICAL & INFRASTRUCTURAL SERVICES (ELECTRICAL) CONTRACT NO. IATS 2025/2026/11 APPOINTMENT OF A SERVICE PROVIDER FOR THE SUPPLY OF A STANDARD TRANSFER SPECIFICATION SYSTEM (STS) COMPLIANT PRE-PAYMENT ELECTRICITY ONLINE VENDING AND MANAGEMENT SYSTEM, INSTALLATION AND MANAGEMENT OF PRE-PAID SMART METERS, INSTALLATION AND MANAGEMENT OF LPU (LARGE POWER USERS) METERS WITH AMR (AUTOMATIC METER READING) FOR A PERIOD OF THREE (3) YEARS INVITATION TO BID ALFRED DUMA LOCAL MUNICIPALITY INVITATION TO BID 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: IATS 2025/2026/11: Appointment of a Service Provider for the Supply of a Standard Transfer Specification System (STS) Compliant Pre-Payment Electricity Online Vending and Management System, Installation and Management of Pre-Paid Smart Meters, Installation and Management of LPU (Large Power Users) Meters with AMR (Automatic Meter Reading) for a Period of Three (3) Years. BID DOCUMENTS ARE NOW AVAILABLE ON THE NATIONAL TREASURY E-TENDER PORTAL AT www.etenders.gov.za. DEPARTMENT OF TECHNICAL AND INFRASTRUCTURAL SERVICES BID NO. IATS 2025/2026/11: APPOINTMENT OF A SERVICE PROVIDER FOR THE SUPPLY OF A STANDARD TRANSFER SPECIFICATION SYSTEM (STS) COMPLIANT PRE-PAYMENT ELECTRICITY ONLINE VENDING AND MANAGEMENT SYSTEM, INSTALLATION AND MANAGEMENT OF PRE-PAID SMART METERS, INSTALLATION AND MANAGEMENT OF LPU (LARGE POWER USERS) METERS WITH AMR (AUTOMATIC METER READING) FOR A PERIOD OF THREE (3) YEARS The issued documents must be returned in the form and order in which they were issued to assist the Municipality to expedite adjudication of the bids. The ALFRED DUMA LOCAL MUNICIPALITY reserves the right to disqualify a bid in the event that the bidder does not fully comply with this provision., OTHER CONSIDERATIONS 12.1 Bidders must also submit three year audited financial statements of the company. 12.2 Bidders must certify that he/she have no outstanding debts due to the Municipality where the bidder originates and any other Municipality or any service provider. 12.3 Only solutions comprising of the vending systems, and AMI/AMI platforms from a single OEM will be considered. 12.4 The company must have an established track record within South Africa, with all three components deployed and functioning as a unified solution within a municipal environment. 12.5 Bidders are required to submit verifiable reference letter(s) from the respective municipality or municipalities confirming: 12.5.1 Operation of the OEM’s vending system, and 12.5.2 Functionality of the OEM’s AMI/AMI platform as an integrated solution. ALFRED DUMA LOCAL MUNICIPALITY DEPARTMENT TECHNICAL & INFRASTRUCTURAL SERVICES (ELECTRICAL) CONTRACT NO. IATS 2025/2026/11 APPOINTMENT OF A SERVICE PROVIDER FOR THE SUPPLY OF A STANDARD TRANSFER SPECIFICATION SYSTEM (STS) COMPLIANT PRE-PAYMENT ELECTRICITY ONLINE VENDING AND MANAGEMENT SYSTEM, INSTALLATION AND MANAGEMENT OF PRE-PAID SMART METERS, INSTALLATION AND MANAGEMENT OF LPU (LARGE POWER USERS) METERS WITH AMR (AUTOMATIC METER READING) FOR A PERIOD OF THREE (3) YEARS TECHNICAL SPECIFICATIONS ALFRED DUMA LOCAL MUNICIPALITY DEPARTMENT TECHNICAL & INFRASTRUCTURAL SERVICES (ELECTRICAL) CATEGORY 1 – SUPPLY OF AN STS COMPLIANT PRE-PAYMENT ELECTRICITY ONLINE VENDING AND MANAGEMENT SYSTEM

How will bids be evaluated?

Unable to extract eligibility criteria

What compliance and legal requirements must bidders meet?

REQUIREMENTS PROOF PROVIDED YES NO STS (Standard Transfer Specification) License XML Vend certified or compliant Service Level Agreement (SLA) proposal Disaster Recovery Management Plan, which includes all facilities, site capacity and service levels Contingency plan(s) proposal / documentation EVALUATION CRITERIA AND FUNCTIONAL AREA Description Sub Total Minimum Bid Points Points Points Evaluation Committee Scores Annexure I: Baseline Reports 5 4 Annexure E: Solution proposition for the supply of the Prepayment Electricity Vending 10 10 5 System Annexure F: PROJECT IMPLEMENTATION 5 5 4 B-BBEE Details: AYMENT ELECTRICITY ONLINE VENDING AND MANAGEMENT SYSTEM, INSTALLATION AND MANAGEMENT OF PRE-PAID SMART METERS, INSTALLATION AND MANAGEMENT OF LPU (LARGE POWER USERS) METERS WITH AMR (AUTOMATIC METER READING) 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, 4 June 2026. FUNCTIONALITY CRITERIA No Description Items Maximum Bid Evaluation Page Ref. Potential committee No. Score Score 1 The Company has undertaken prepaid electricity vending and management solutions for municipalities in the last three (3) years to a value of not less than R10 000 000.00. 20 20 POINTS PER PROJECT Appointment Letters and Completion Certificates/ Reference Letter 2 The company has the below number of meters utilizing the Advanced Metering Infrastructure system. 10 000 meters (7) 15 30 000 meters (10) 50 000 meters or more (15) Attach appointment letter and an extract or evidence from the management system. 3 The bidder must submit a comprehensive solution proposal detailing how the solution will enhance municipal revenue collection, ensure efficient rollout of smart metering infrastructure, and provide sustainable connectivity options to support current and future municipal initiatives. The proposal must consist of the following information: (

What are the important dates and deadlines for this tender?

{"briefingSession":"{\"date\":\"17 June 2026\",\"time\":\"10:00 am\",\"venue\":\"10:00 am at the Legal\",\"is_compulsory\":true}"}

Who should be contacted for queries about this tender?

{"name":"Mr M Mthimkhulu","email":"rmazibuko@alfredduma.gov.za","phone":"+27 (036) 637-2231","department":"TECHNICAL & INFRASTRUCTURAL SERVICES","address":null}

Supply & Installation of STS-Compliant Pre-Payment Electricity System

This specification is intended to provide a summary of the Alfred Duma Local Municipality’s

critical requirements for the supply of an STS compliant Pre-payment Electricity Online

Vending and Management System.

The Alfred Duma Local Municipality is currently utilising an existing service provider for the

management of a Prepayment Electricity Vending system in its licensed area.

The municipality is looking for a suitable Service Provider that will supply, install, support and

maintain an Electricity Prepayment Vending System as an integral part of the municipality’s

service delivery requirement.

The Alfred Duma Local Municipality intends to have vending points throughout its

geographic areas, as reflected (but not limited to) in Annexure B.

3. Compliance with specification

The supplier shall submit with their tender a schedule listing clause-by-clause, specific details

indicating compliance or non-compliance with the requirements of the specification.

4. Mandatory documents

The documents listed in must be submitted as evidence.

In addition, the following documents and information must also be submitted. Failure to comply

with these requirements will lead the bid being non-response and the bid will be disqualified.

All documents must be in the name of the Bidding company:

4.1 Size and Ability to Support Online Vending System;

4.2 Bidder to describe the company’s existing vending infrastructure (e.g. cellular

phone/internet vending, etc.), including the volume of transactions, size and number

of vending points;

4.3 The bidder should furnish the information on major past supplies under the relevant

product/services and satisfactory performance for the last five financial years;

4.4 The bidder should be a manufacture or the OEM authorized partner of the respective

system;

4.5 The bidder shall supply and maintain the offered items for a minimum period of three

years in South Africa;

4.6 The bidder should have the technical and human resources within the province;

4.7 The bidder to provide the name, respective titles, and years of experience of

the person/s who will be responsible for management/co-ordination of all work on the

project. In addition, provide the names of all personnel that are proposed to be

involved in the project, their resumes, and their proposed roles/responsibilities

(including the name of subcontractors and their personnel who will be working on the

project, if any);

4.8 The Bidder to provide a summary describing the bidder’s area of expertise and

resource capabilities as they relate to this proposal;

4.9 The bidder shall meet all mandatory requirements by providing the required

supporting documentation as evidence of compliance title. The Alfred Duma Local

Municipality reserves the right to contact any of the references supplied by the bidder

to obtain information regarding work that the bidder has performed.

Note: Relevant documents in support of above should be furnished.

The service provider will be required to Supply, install, maintain and support the Pre-payment

Electricity Online Vending and Management System on twenty-four hours a day, seven days

a week and three hundred and sixty-five days (24x7x365) basis for the duration of the contract

period.

6. Vending system costs

6.1 The Bidder must detail the pricing plan based on a server hosting proposal.

Insufficient detail may lead to the tender being disqualified since a fair comparison

of tenderers will not be possible.

6.2 The Bidder shall specify their support costs per hour after final commissioning and

handover. A proposed Draft Service Level Agreement (SLA) must be included.

6.3 The Bidder shall separately identify the individual components included in the total

cost, such as:

6.3.1 Vending Terminals;

6.3.2 Management Stations;

6.3.3 Database, operating systems, workstations, Points of Sale and licenses (if

applicable);

6.3.4 Additional hardware requirements (if applicable);

6.3.5 Integration with the Municipality’s financial system Munsoft, Proof to be

provided

6.3.6 Complete system and interface testing;

6.3.7 Training costs;

6.3.8 As well as additional options, to enable a fair comparison of tenders offered to

be made.

7. Demonstration of system offered

Only Bidders who can offer a fully functional Vending System that can be demonstrated will

be considered. Bidders shall specify the number of technical staff engaged in development

and testing of the vending software as well as the support staff available after hand-over and

Call Centre availability 24/7.

8. Guaranteed system performance

8.1 The successful Bidder shall have the new system commissioned within one (1)

month of the contract being awarded.

8.2 The Bidder shall guarantee the systems’ functional performance and any upgrades

required to correct any system mal-operation, shall be for the Bidder’s account.

8.3 In the event of any latent defect (programming “bug”) becoming evident, the Bidder

shall be responsible for the immediate rectification of such defects at their own cost.

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 that functional services ancillary to the supply of the goods,

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

commissioning, provision of technical assistance, training, catering, gardening,

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

contract.

1.25 “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 inspection

5.1 The supplier shall not, without the purchaser’s prior written consent, disclose the

contract, or any provision thereof, or any specification, plan, drawing, pattern,

sample, or information furnished by or on behalf of the purchaser in connection

therewith, to any person other than a person employed by the supplier in the

performance of the contract. Disclosure to any such employed person shall be

made in confidence and shall extend only so far as may be necessary for purposes

of such performance.

5.2 The supplier shall not, without the purchaser’s prior written consent, make use of

any document or information mentioned in GCC clause 5.1 except for purposes of

performing the contract.

5.3 Any document, other than the contract itself mentioned in GCC clause 5.1 shall

remain the property of the purchaser and shall be returned (all copies) to the

purchaser on completion of the supplier’s performance under the contract if so

required by the purchaser.

5.4 The supplier shall permit the purchaser to inspect the supplier’s records relating to

the performance of the supplier and to have them audited by auditors appointed by

the purchaser, if so required by the purchaser.

6. Patent Rights

6.1 The supplier shall indemnify the purchaser against all third-party claims of

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

goods or any part thereof by the purchaser.

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:

7.3.1 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

7.3.2 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 pre-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. Packing

9.1 The supplier shall provide such packing of the goods as is required to prevent their

damage or deterioration during transit to their final destination, as indicated in the

contract. The packing shall be sufficient to withstand, without limitation, rough

handling during transit and exposure to extreme temperatures, salt and

precipitation during transit, and open storage. Packing, case size and weights shall

take into consideration, where appropriate, the remoteness of the goods’ final

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

9.2 The packing, marking, and documentation within and outside the packages shall

comply strictly with such special requirements as shall be expressly provided for in

the contract, including additional requirements, if any, 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:

13.1.1 performance or supervision of on-site assembly and/or commissioning

of the supplied goods;

13.1.2 furnishing of tools required for assembly and/or maintenance of the

supplied goods;

13.1.3 furnishing of a detailed operations and maintenance manual for each

appropriate unit of the supplied goods;

13.1.4 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

13.1.5 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:

14.1.1 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

14.1.2 in the event of termination of production of the spare parts:

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

to permit the purchaser to procure needed requirements; and

14.3 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 (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.

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 where necessary. All Pre-paid sales must be paid over

to the Municipality daily through an agreed process.

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.

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.

However, the Municipality reserves the right, at its discretion and as may be

required, to approach the awarded bidder to furnish quotations for the supply and

delivery of meters and any related equipment, with a view to procurement.

19. Assignment

19.1 The supplier shall not assign, in whole or in part, its obligations to perform under

the contract, except with the purchaser’s prior written consent.

20. Subcontracts

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under

this contract if not already specified in the Bid. Such notification, in the original Bid

or later, shall not relieve the supplier from any liability or obligation under the

contract.

21. Delays in the supplier’s performance

21.1 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, 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 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:

23.1.1 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;

23.1.2 if the supplier fails to perform any other obligation(s) under the

contract; or

23.1.3 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 supplier as having no objection and proceed with the

restriction.

23.5 Any restriction imposed on any person by the purchaser will, at the discretion of the

purchaser, 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

enterprise or person the first-mentioned person, is or was in the opinion of the

purchaser 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:

23.6.1 The name and address of the supplier and / or person restricted by

the purchaser;

23.6.2 The date and commencement of the restriction

23.6.3 The period of restriction; and

23.6.4 The reasons for the restriction.

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

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

23.8 If a court of law convicts a person of an offence as contemplated in sections 12 or

13 of the Prevention and Combating of Corrupt Activities Act, No. , the

court may also rule that person’s name be endorsed on the Register of Bid

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

will be prohibited from doing business with the public sector for the period not less

than five years or not more than ten years. The National Treasury is empowered to

determine the period of restriction and each case will be dealt with on its own

merits. According to section 32 of the Act the Register must be open to the public.

The Register can be perused on the National Treasury website.

24. Anti-dumping and countervailing duties and rights

24.1 When, after the date of Bid, provisional payments are required, or 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,

27.4.1 the parties shall continue to perform their respective obligations under

the contract unless they otherwise agree; and

27.4.2 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;

28.1.1 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

28.1.2 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. Amendments 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 mended,

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.

Alfred duma local municipality

Department technical & infrastructural

Services (electrical)

Contract NO. iats 2025/2026/11

Appointment of a service provider for the

Supply of a standard transfer specification

System (sts) compliant pre-payment electricity

Online vending and management system,

Installation and management of pre-paid smart

Meters, installation and management of lpu

(Large power users) meters with amr

(Automatic meter reading) for a period of three

(3) years

Special conditions of contract

Alfred duma local municipality

Department technical & infrastructural services (electrical)

Appointment of a service provider for the supply of a standard transfer

Specification system (sts) compliant pre-payment electricity online vending and

Management system, installation and management of pre-paid smart meters,

Installation and management of lpu (large power users) meters with amr (automatic

Meter reading) for a period of three (3) years

1. Duration of contract

The duration of this contract will be THREE (3) YEARS upon receipt of an appointment letter

and signing of the accepting letter and returning thereof.

2. Payments

All payments will be made to the Service Provider through submission of a monthly invoice

stipulating the Commission charged on the sales. All sales must be paid over to the

Municipality daily through an agreed process.

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 acceptance by the successful

bidder.

3.3 Service level agreement entered into with the successful bidder will capture the time

frames for performance applying to this contract.

3.4 Should no consensus be reached within fourteen (14) calendar days of finalizing the

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

3.4.1 Cancel its acceptance of the bid, or

3.4.2 Extend the negotiation period without prejudice to any of its other rights in terms

of this contract or common law.

4. Penalties

In the event of non-compliance with the agreed time frames, Penalty fees in the amount of

R500.00 (Five hundred Rand) per day will be deducted in lieu of each day the successful

bidder fails to render it’s service in respect of the project. Penalties will be applied for failure

to comply with the conditions attached to this bid and Service level agreement. These

penalties are more fully described in the Service Level agreement.

5. Price

The prices quoted shall be a fixed cost and should include design, compilation of Bid

documents, supervision, disbursements, etc. Survey will be covered under the provisional

sum. Management Fee for provisional sum must be reflected.

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 by all parties on fortnightly basis during implementation phase

and thereafter on a monthly basis not exceeding six months after which quarterly meeting to

be held with Service Provider.

9. Programme/performance

It is compulsory to submit a program of confirmed activities to be undertaken within three (3)

days after the award of the bid, and bimonthly progress report.

The Service provider will be required to submit a program of confirmed activities to be

undertaken in the project which will form an Annexure to the Service Level Agreement.

The Service Provider will also be required to submit a monthly progress report.

10. Mandatory objection period

All administrative actions and decisions taken by the ALFRED DUMA LOCAL MUNICIPALITY

Municipality through its officials may become subject to an objections and appeals process.

As such, in terms of Section 4 Municipal Finance Management Act , a period of

fourteen (14) days will be set aside to allow for the submission of objections.

In the event that an appellant initiates court proceedings, the Municipality shall retain the right

to proceed with the implementation of the required services, as these are deemed critical to

revenue generation and the uninterrupted delivery of essential service.

And content (mbd 6.2)

C. Contract rendering of services (mbd 7.2)

9 declaration of bidder’s past supply chain

Management practices (mbd 8)

10 certificate of independent bid determination (mbd 9)