Broad-Based Black Economic Empowerment Act (B-BBEE Act)
Act 53 of 2003
Provides the empowerment-compliance context often used in public-sector supplier evaluation.
Relevant because this is a South African public-sector procurement opportunity.
Documents available on tender detail page
Tender Type
Request for Bid(Open-Tender)
Delivery Location
221 MURCHISON STREET, LISTER CLARENCE BUILDING - LADYSMITH - LADYSMITH - 3370
Organization Type
GOVERNMENT
Published
05 Jun 2026
OCDS Reference
ocds-9t57fa-158236
The tender requires the supply, installation, and management of an sts-compliant pre-payment electricity vending system, pre-paid smart meters, and lpu meters with amr for 3 years. Open to eligible service providers in kwazulu-natal. Compulsory briefing on the specified date and location.
Description
Source: IATS 2025 2026 11.pdf (TENDER)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 management of a Prepayment Electricity Vending system in its licensed area. maintain an Electricity Prepayment Vending System as an integral part of the municipality’s service delivery requirement.
Important Dates
Source: IATS 2025 2026 11.pdf (TENDER){"briefingSession":"{\"date\":\"17 June 2026\",\"time\":\"10:00 am\",\"venue\":\"10:00 am at the Legal\",\"is_compulsory\":true}"}
Briefing Session
Source: IATS 2025 2026 11.pdf (TENDER)COMPULSORY BRIEFING SESSION: Wednesday 17 June 2026 at 10:00 am at the Legal Services Boardroom, Lister Clarence Building, 221 Murchison Street, Ladysmith.
Contact Information
Source: IATS 2025 2026 11.pdf (TENDER){"name":"Mr M Mthimkhulu","email":"[email protected]","phone":"+27 (036) 637-2231","department":"TECHNICAL & INFRASTRUCTURAL SERVICES","address":null}
Submission Guidelines
Source: IATS 2025 2026 11.pdf (TENDER)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
Returnable Documents
Source: IATS 2025 2026 11.pdf (TENDER)Forms to be completed by the bidder: A. FORM OF BID B. TAX CLEARANCE CERTIFICATE 7 DECLARATION OF INTEREST (MBD 4) 8 PROCUREMENT DOCUMENTS A. PREFERENCE POINTS CLAIM FORM (MBD 6.1) B. DECLARATION CERTIFICATE FOR LOCAL PRODUCTION 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) 11 PARTICULARS OF BIDDER
Evaluation Criteria
Source: IATS 2025 2026 11.pdf (TENDER)Unable to extract eligibility criteria
Technical Specifications
Source: IATS 2025 2026 11.pdf (TENDER)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.
Methodology
Source: IATS 2025 2026 11.pdfVending Channels: 30 30
Municipal Terminals 5
Third Party
Bank ATM Machines 5
information: (5 Points)
1) Vending System
2) Installation of meters audits, investigations,
reconnection/disconnection, of meters.
3) AMI/AMR and Head End System
2. Methodology – (5 Points)
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.
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.
Annexure F: PROJECT IMPLEMENTATION
5 5 4
Approach
Vending Channels: 30 30
Municipal Terminals 5
Quality Management
Source: IATS 2025 2026 11.pdf8.1 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.
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.
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.
Pricing Schedule
Source: IATS 2025 2026 11.pdfpreferred 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.
6.1 The Bidder must detail the pricing plan based on a server hosting proposal.
Compliance Requirements
Source: IATS 2025 2026 11.pdf (TENDER)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: (
B-BBEE Requirements
Source: IATS 2025 2026 11.pdf (TENDER)B-BBEE levels, empowerment, preferential procurement, local content
Health & Safety
Source: IATS 2025 2026 11.pdf3.1 Unless otherwise indicated in the Bidding documents, the purchaser shall not be
liable for any expense incurred in the preparation and submission of a Bid. Where
applicable a nonrefundable fee for documents may be charged.
3.2 Invitations to Bid are usually published in locally distributed news media and on the
municipality/municipal entity website.
5.1 The supplier shall not, without the purchaser’s prior written consent, disclose the
contract, or any provision thereof, or any specification, plan, drawing, pattern,
sample, or information furnished by or on behalf of the purchaser in connection
therewith, to any person other than a person employed by the supplier in the
performance of the contract. Disclosure to any such employed person shall be
made in confidence and shall extend only so far as may be necessary for purposes
of such performance.
5.2 The supplier shall not, without the purchaser’s prior written consent, make use of
any document or information mentioned in GCC clause 5.1 except for purposes of
performing the contract.
5.3 Any document, other than the contract itself mentioned in GCC clause 5.1 shall
remain the property of the purchaser and shall be returned (all copies) to the
purchaser on completion of the supplier’s performance under the contract if so
required by the purchaser.
5.4 The supplier shall permit the purchaser to inspect the supplier’s records relating to
the performance of the supplier and to have them audited by auditors appointed by
the purchaser, if so required by the purchaser.
24.1 When, after the date of Bid, provisional payments are required, or anti-dumping or
countervailing duties are imposed, or the amount of a provisional payment or anti-
dumping or countervailing right is increased in respect of any dumped or
subsidized import, the State is not liable for any amount so required or imposed, or
for the amount of any such increase. When, after the said date, such a provisional
payment is no longer required or any such anti-dumping or countervailing right is
abolished, or where the amount of such provisional payment or any such right is
reduced, any such favorable difference shall on demand be paid forthwith by the
supplier to the purchaser or the purchaser may deduct such amounts from moneys
(if any) which may otherwise be due to the supplier in regard to goods or services
which he delivered or rendered, or is to deliver or render in terms of the contract or
any other contract or any other amount which may be due to him.
31.1 Every written acceptance of a Bid shall be posted to the supplier concerned by
registered or certified mail and any other notice to him shall be posted by ordinary
mail to the address furnished in his Bid or to the address notified later by him in
writing and such posting shall be deemed to be proper service of such notice.
31.2 The time mentioned in the contract documents for performing any act after such
aforesaid notice has been given, shall be reckoned from the date of posting of such
notice.
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.
to obtain information regarding work that the bidder has performed.
Note: Relevant documents in support of above should be furnished.
5. Scope of work
Contractual Terms
Source: IATS 2025 2026 11.pdf16. 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:
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)
1.1 “Closing time” means the date and hour specified in the Bidding documents for
the receipt of Bids.
1.2 “Contract” means the written agreement entered into between the purchaser and
the supplier, as recorded in the contract form signed by the parties, including all
attachments and appendices thereto and all documents incorporated by reference
therein.
1.3 “Contract price” means the price payable to the supplier under the contract for
the full and proper performance of his contractual obligations.
1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of
value to influence the action of a public official in the procurement process or in
contract execution.
1.5 “Countervailing duties” are imposed in cases where an enterprise abroad is
subsidized by its government and encouraged to market its products
internationally.
1.6 “Country of origin” means the place where the goods were mined, grown or
produced or from which the services are supplied. Goods are produced when,
through manufacturing, processing or substantial and major assembly of
components, a commercially recognized new product results that is substantially
different in basic characteristics or in purpose or utility from its components.
1.7 “Day” means calendar day.
1.8 “Delivery” means delivery in compliance of the conditions of the contract or order.
1.9 “Delivery ex stock” means immediate delivery directly from stock actually on
hand.
1.10 “Delivery into consignees store or to his site” means delivered and unloaded in
the specified store or depot or on the specified site in compliance with the
conditions of the contract or order, the supplier bearing all risks and charges
involved until the goods are so delivered and a valid receipt is obtained.
1.11 “Dumping” occurs when a private enterprise abroad market its goods on own
initiative in the RSA at lower prices than that of the country of origin and which
have the potential to harm the local industries in the RSA.
1.12 “Force majeure” means an event beyond the control of the supplier and not
involving the supplier’s fault or negligence and not foreseeable. Such events may
include, but is not restricted to, acts of the purchaser in its sovereign capacity, wars
or revolutions, fires, floods, epidemics, quarantine restrictions and freight
embargoes.
1.13 “Fraudulent practice” means a misrepresentation of facts in order to influence a
procurement process or the execution of a contract to the detriment of any Bidder,
and includes collusive practice among Bidders (prior to or after Bid submission)
designed to establish Bid prices at artificial non-competitive levels and to deprive
the Bidder of the benefits of free and open competition.
1.14 “GCC” means the General Conditions of Contract.
1.15 “Goods” means all of the equipment, machinery, and/or other materials that the
supplier is required to supply to the purchaser under the contract.
1.16 “Imported content” means that portion of the Bidding price represented by the
cost of components, parts or materials which have been or are still to be imported
(whether by the supplier or his subcontractors) and which costs are inclusive of the
costs abroad, plus freight and other direct importation costs such as landing costs,
dock dues, import duty, sales duty or other similar tax or duty at the South African
place of entry as well as transportation and handling charges to the factory in the
1.17 “Local content” means that portion of the Bidding price, which is not included in
the imported content provided that local manufacture does take place.
1.18 “Manufacture” means the production of products in a factory using labor,
materials, components and machinery and includes other related value-adding
activities.
1.19 “Order” means an official written order issued for the supply of goods or works or
the rendering of a service.
1.20 “Project site,” where applicable, means the place indicated in Bidding documents.
1.21 “Purchaser” means the organization purchasing the goods.
1.22 “Republic” means the Republic of South Africa.
1.23 “SCC” means the Special Conditions of Contract.
1.24 “Services” means 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.
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.
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.
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.
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.
14.1 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. 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.
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.
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.
22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or
to perform the services within the period(s) specified in the contract, the purchaser
shall, without prejudice to its other remedies under the contract, deduct from the
contract price, as a penalty, a sum calculated on the delivered price of the delayed
goods or unperformed services using the current prime interest rate calculated for
each day of the delay until actual delivery or performance. The purchaser may also
consider termination of the contract pursuant to GCC Clause 23.
23.1 The purchaser, without prejudice to any other remedy for breach of contract, by
written notice of default sent to the supplier, may terminate this contract in whole or
in part:
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.
25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be
liable for forfeiture of its performance security, damages, or termination for default if
and to the extent that his delay in performance or other failure to perform his
obligations under the contract is the result of an event of force majeure.
25.2 If a force majeure situation arises, the supplier shall promptly notify the purchaser
in writing of such condition and the cause thereof. Unless otherwise directed by the
purchaser in writing, the supplier shall continue to perform its obligations under the
contract as far as is reasonably practical, and shall seek all reasonable alternative
means for performance not prevented by the force majeure event.
26.1 The purchaser may at any time terminate the contract by giving written notice to the
supplier if the supplier becomes bankrupt or otherwise insolvent. In this event,
termination will be without compensation to the supplier, provided that such
termination will not prejudice or affect any right of action or remedy, which has
accrued or will accrue thereafter to the purchaser.
27.1 If any dispute or difference of any kind whatsoever arises between the purchaser
and the supplier in connection with or arising out of the contract, the parties shall
make every effort to resolve amicably such dispute or difference by
mutual consultation.
27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference
by such mutual consultation, then either the purchaser or the supplier may give
notice to the other party of his intention to commence with mediation. No mediation
in respect of this matter may be commenced unless such notice is given to the
other party.
27.3 Should it not be possible to settle a dispute by means of mediation, it may be
settled in a South African court of law.
27.4 Notwithstanding any reference to mediation and/or court proceedings herein,
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.
28.1 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.
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.
9. Requirements
Special Conditions
Source: IATS 2025 2026 11.pdf (TENDER)Failure to attend the compulsory briefing sessions will invalidate your bid.
Requirements
Source: IATS 2025 2026 11.pdf (TENDER)Bidders must address all three components in full. Failure to provide sufficient detail for any component may result in a lower score or disqualification where minimum thresholds are not met.
Section
Source: IATS 2025 2026 11.pdf (TENDER)Connectivity and Future Readiness – (5 Points) The bidder must outline suitable connectivity options that will support the smart metering solution and benefit both the municipality and the community. This must include: Proposed communication technologies (e.g., cellular, RF, fibre, LPWAN, PLC) Network reliability and coverage considerations Scalability for future municipal projects (e.g., smart city initiatives) Socio-economic benefits, including potential community upliftment and digital inclusion
None
Request for Bid(Open-Tender)
221 MURCHISON STREET, LISTER CLARENCE BUILDING - LADYSMITH - LADYSMITH - 3370
Recommended Certifications
Having these can improve your winning chances: NERSA Registration, PV GreenCard (Solar Installation)
These references help suppliers understand the public-procurement framework around this opportunity. They are generated from the tender category, issuing organisation type and procurement context.
These rules commonly apply to South African public-sector procurement.
Act 53 of 2003
Provides the empowerment-compliance context often used in public-sector supplier evaluation.
Relevant because this is a South African public-sector procurement opportunity.
Act 108 of 1996 (s217)
This is general procurement context, not legal advice. Always verify requirements in the official tender documents and issuing authority notices.
IATS 2025 2026 11.pdf
Analysis completed but response format was invalid
To download these documents and access AI-powered analysis, visit the main tender page.
Date & Time
Thursday, 02 July 2026 - 11:00
Venue
LEGAL SERVICES BOARDROOM, LISTER CLARENCE BUIDLING, 221 MURCHISON STREET, LADYSMITH
Important: Attendance at this briefing session is mandatory. Bids from suppliers who do not attend may be disqualified.
05 Jun
2026
Tender Published
Tender was published
02 Jul
2026
Closing Date
Tender closing date
Alfred Duma Local Municipality governs Ladysmith and surrounds in the uThukela District of KwaZulu-Natal.
Matched by category & region
Median Estimate
RÂ 800Â 000
Range
Based on General government tender averages. Companies with similar profiles typically bid near the median.
* Estimates are based on historical data and do not guarantee actual award values.
Sets the constitutional standard for fair, equitable, transparent, competitive and cost-effective public procurement.
Relevant because this is a South African public-sector procurement opportunity.
Act 5 of 2000
Covers preferential procurement and preference-point systems used in public tenders.
Relevant because this is a South African public-sector procurement opportunity.
Act 12 of 2004
Supports anti-corruption controls and supplier integrity in procurement processes.
Relevant because this is a South African public-sector procurement opportunity.
Act 28 of 2024
Provides the national framework for public procurement across government.
Relevant because this is a South African public-sector procurement opportunity.
Act 2 of 2000
Supports access to tender records, award decisions and public-sector procurement information.
Relevant because this is a South African public-sector procurement opportunity.
Act 3 of 2000
Supports lawful, reasonable and procedurally fair administrative tender decisions.
Relevant because this is a South African public-sector procurement opportunity.
These rules are linked to the work category, industry, or regulated service area.
Act 4 of 2006
Relevant to electricity, generation, transmission, distribution and energy-service procurement.
Relevant because this tender appears to involve electricity, power supply, energy infrastructure, generators, or energy maintenance. Relevant because this tender appears to involve petroleum, oil, gas, fuel, or energy-resource services.
Act 107 of 1998
Relevant where environmental authorisations, EIAs or environmental compliance may apply.
Relevant because this tender appears to involve electricity, power supply, energy infrastructure, generators, or energy maintenance. Relevant because this tender appears to involve petroleum, oil, gas, fuel, or energy-resource services.
Act 85 of 1993
Sets health and safety duties for contractors, employers and service providers working on public-sector sites.
Relevant because this tender appears to involve electricity, power supply, energy infrastructure, generators, or energy maintenance. Relevant because this tender appears to involve petroleum, oil, gas, fuel, or energy-resource services.
Act 28 of 2002
Relevant to mineral resources, mining rights, prospecting and mining-related procurement.
Relevant because this tender appears to involve petroleum, oil, gas, fuel, or energy-resource services.
Act 40 of 2004
Relevant to regulated electricity, piped-gas and petroleum-pipeline activities.
Relevant because this tender appears to involve electricity, power supply, energy infrastructure, generators, or energy maintenance.
Address
221 Murchison St, uMnambithi, 3370, South Africa
Source confidence
High source confidence
Official source
eTenders.gov.za
Documents found
1
Last checked
05 Jun 2026
AI status
Enhanced
Data conflicts
None detected
This tender has strong source evidence, including source metadata and supporting tender information synced from the government tender portal.
Tenders SA is not the issuing authority. All tenders are automatically synced from the official government tender portal. Always confirm final submission details, closing dates, briefing sessions, eligibility requirements, and documents on the official government portal before applying.
Contact
+27 36 637 2231[email protected]www.gov.za/about-government/contact-directory/kzn-municipalities/kzn-municipalities/emnambithi-ladysmith-local221 Murchison St, uMnambithi, 3370, South Africa
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