Re- advertisement: provision of external security services to newcastle municipality for a period of 36 months

{"closingDate":"30 September 2026","closingTime":"12:00","briefingSession":"{"date":null,"time":"9h30","venue":"the Newcastle Town Hall,","is_compulsory":true}"}

{"name":"Ms Dalene Marais Mr","email":"[email protected]","phone":"034 328 7769","department":"Y SERVICES – SECURITY SERVICES","address":"Tower Block Building, 37 Murchison Street, 1st Floor"}

Returnable Documents: PLEASE ENSURE THAT THE FOLLOWING FORMS HAVE BEEN DULY COMPLETED AND SIGNED AND THAT ALL DOCUMENTS AS REQUESTED, ARE ATTACHED TO THE BID DOCUMENT: Description Yes/No MBD 1 – Invitation to Bid Yes No Is the form duly completed and signed? Authority to Sign a Bid Yes No Is the form duly completed and is a certified copy of the resolution attached? MBD 3.1 - Pricing Schedule – Firm Prices (Purchases) Yes No Is the form duly completed and signed? MBD 3.2 - Pricing Schedule – Non-Firm Prices (Purchases) Yes No Is the form duly completed and signed? MBD 4 Declaration of Interest Yes No Is the form duly completed and signed? MBD 6.1 Preference Points Claim Form Yes No Is the form duly completed and signed? MBD 8 Declaration of Past Supply Chain Practices Yes No Is the form duly completed and signed? MBD 9 Certificate of Independent Bid Determination Yes No Is the form duly completed and signed? Declaration for Municipal Accounts Yes No Is the form duly completed and signed? Experience of Bidder Yes No Is the form duly completed with relevant experience detailed and signed? Pricing schedule Yes No Is the form duly completed and signed? Name of Bidder Signature Name (print) Capacity Date PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE MUNICIPALITY FOR A PERIOD OF 36 MONTHS, BID NOTICE & INVITATION TO BID BID NO: A042 - 2025/26 RE- ADVERTISEMENT: PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE MUNICIPALITY FOR A PERIOD OF 36 MONTHS In terms of section 110 of the municipal finance management act, 2003 (no. ), tenders are hereby invited provision of external security services to Newcastle Municipality for a period of 36 months. Bid documents are obtainable from 02 September 2026, at the office of the Strategic Executive Director: Budget and Treasury Office, Municipal Civic Centre Tower Block – Office B218 2nd Floor, 37 Murchison Street, Newcastle, 2940 during office hours between 08h00 to 15h00 upon a payment of a non-refundable document fee of R 300.00. Alternatively, the document may be downloaded free of charge from the National Treasury website (www.etenders.gov.za). Banking Details - Banking Details - The Newcastle Municipality, ABSA – Account No: 4110354947, Br Code 632005 (the proof of payment must reflect the bid number and bidder’s name as reference). Procurement enquiries : Ms Dalene Marais Telephone no.: 034 328 7769 Technical enquiries: Mr P Marais Telephone no.: 034 312 4704 Compulsory briefing session will take place on the 16 September @ 9h30 at the Newcastle Town Hall, Newcastle, Scott Street, Gps coordinates will be shared during briefing session for tenders to visit the sites to conduct physical inspections. Bids will be adjudicated in terms of the Preferential Procurement Regulations, 2022 pertaining to Preferential Procurement Policy Framework Act, 5/2000 and other applicable legislations and will be based on 90/10 points scoring system. Preference points will be awarded to service providers based on Reconstruction and Development Programme - Government Gazette: 16085 (1994) initiatives. The bids will be valid for a period of one hundred and twenty (120) days from bid closing date. The Council reserves the right to accept all, some, or none of the bids submitted, either wholly or in part and it is not obliged to accept the lowest bid. Completed bid documents complying with the conditions of bid must be sealed and endorsed “Bid No.: A042 - 2025/26 RE- ADVERTISEMENT: PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE MUNICIPALITY FOR A PERIOD OF 36 MONTHS” bearing the name and address of the bidder at the back of the envelope to be deposited in the official bid box provided in the foyer of Newcastle Municipality – Municipal Civic Offices (Rates Hall), 37 Murchison Street, 1st floor, Newcastle by no later than 12:00 on Wednesday, 30 September 2026 where bids will be opened in public. Late quotations or tenders received by way of facsimile or e-Mail will under no circumstances be considered. Functional Evaluation Only bids that comply with all administrative requirements (Acceptable Bids) will be considered during the functionality evaluation phase and the allocation of points will be based on functional criterions as indicated in the Terms of Reference. Service providers that submitted acceptable bids and that score at least 70% on functionality will qualify for the next evaluation stage. Only prospective suppliers who are registered on the National Treasury Supplier database are legible to bid. To register on the CSD log onto www.csd.gov.za of 103 PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE MUNICIPALITY FOR A PERIOD OF 36 MONTHS Ms. P. H. Z Kubheka Acting Municipal Manager MBD 1: INVITATION TO BID PART A PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE MUNICIPALITY FOR A PERIOD OF 36 MONTHS YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE NEWCASTLE MUNICIPALITY Bid Number A042 - 2025/26 Closing Date 00 September 2026 Closing Time 12h00 RE- ADVERTISEMENT: PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE MUNICIPALITY FOR A PERIOD OF 36 MONTHS

14. MBD 6.1 - Preference Points Claim Form 47
15. Evaluation Criteria 77

MBD 6.1 Preference Points Claim Form Yes No

Functional Evaluation

the functionality evaluation phase and the allocation of points will be based on functional criterions

score at least 70% on functionality will qualify for the next evaluation stage.

Preferential points

(80/20) or (90/10) Price = 80 / 90 Preferent points = 20 / 10 Total = 100

Total HDI score 20 10

Points will be allocated as per information on the attached csd report.

Telephone number 034 328 7769 034 312 4704

Technical enquiries: Mr P Marais Telephone no.: 034 312 4704

based on 90/10 points scoring system. Preference points will be awarded to service providers based on

15. Samples for Quality Control

The successful bidder will be required to fill in and sign a written contract form (mbd7).

Bid response documents may be deposited in

The bid box situated at

FIRST (1st) FLOOR OF THE NEWCASTLE MUNICIPALITY

Municipal civic centre offices (rates hall)

37 murchison street

Newcastle

2940

Supplier information

Name of Bidder

Postal Address

Street Address

Telephone Number Code Number

Cellphone Number

Facsimile Number Code Number

E-Mail Address

Vat Registration Number

Tax Compliance Status TCS PIN: OR CSD No:

Preferential points

(80/20) or (90/10) Price = 80 / 90 Preferent points = 20 / 10 Total = 100

20 10 Tick for

Specific Contract Participation Goals claim

Black people (With no franchise in national elections before the 1983 8 4

and 1993 Constitution / HDI)

Women / female (HDI) 2 1

People with disability (HDI) 2 1

Youth (HDI) 4 2

Locality (within Amajuba district) 4 2

Total HDI score 20 10

Points will be allocated as per information on the attached csd report.

Total Bid Price:

Total Number of Items

Offered

Signature of Bidder Date:

Capacity under which this bid is signed:

Enquiries may be directed to:

Bidding Procedure Enquiries Technical enquiries

Contact person Ms Dalene Marais Mr P Marais

Telephone number 034 328 7769 034 312 4704

E-mail address [email protected] [email protected]

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Provision of external security services to newcastle municipality for a period of 36 months

Part b

Terms and Conditions for Bidding

1. Bid submission:

1.1. Bids must be delivered by the stipulated time to the correct address. Late bids will not be

accepted for consideration.

1.2. All bids must be submitted on the official forms provided– (The document should not be

reformatted, edited in a soft copy format).

1.3. This bid is subject to the Preferential Procurement Policy Framework Act and the Preferential

Procurement Regulations, 2022, the General Conditions of Contract (GCC) and, if applicable,

any other special conditions of contract.

2. Tax compliance requirements

2.1 Bidders must ensure compliance with their tax obligations.

2.2 Bidders are required to submit their unique Personal Identification Number (Pin) issued by SARS

to enable the organ of state to view the taxpayer’s profile and tax status.

2.3 Application for the Tax Compliance Status (TCS) certificate or Pin may also be made via e-

filing. To use this provision, taxpayers will need to register with SARS as e-filers through the

website www.sars.gov.za.

2.4 Foreign suppliers must complete the Pre-Award Questionnaire in part B:3.

2.5 Bidders may also submit a printed TCS certificate together with the bid.

2.6 In bids where consortia / joint ventures / sub-contractors are involved; each party must submit

a separate TCS certificate / Pin / CSD number.

2.7 Where no TCS is available, but the bidder is registered on the Central Supplier Database (CSD),

a CSD number must be provided.

3. Questionnaire to bidding foreign suppliers

3.1. Is the entity a resident of the Republic of South Africa (RSA)? Yes No

3.2. Does the entity have a branch in the RSA? Yes No

3.3. Does the entity have a permanent establishment in the RSA? Yes No

3.4. Does the entity have any source of income in the RSA? Yes No

3.5. Is the entity liable in the RSA for any form of taxation? Yes No

If the answer is “no” to all the above, then it is not a requirement to register for a Tax Compliance

Status System Pin Code from the South African Revenue Service (SARS) and if not register as per

2.3 above.

NB: Failure to provide any of the above particulars may render the bid invalid.

No bids will be considered from persons in the service of the state.

Signature of bidder: ...................................................

Capacity under which this bid is signed: ...................................................

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

Provision of external security services to newcastle municipality for a period of 36 months

3. General conditions of bid

4. General conditions of Contract

1.1. This Bid is subject to the General Conditions of Contract (GCC) 2010 and, if applicable,

any other Special Conditions of Contract. Whenever there is a conflict between the

GCC and SCC, the provisions in the SCC shall prevail.

16. MBD 9 - Certificate of Independent Bid Declaration 54

Part b – specifications and pricing schedule

17. Specifications 58
18. Evaluation Criteria 77
19. Pricing Schedule 80
20. Schedule of Work Experience of the Bidder 101
21. Schedule of Omission & Variations from the Specifications 102
22. Declaration by Bidder 103

Provision of external security services to newcastle municipality for a period of 36 months

Part a – administrative requirements in terms

sites to conduct physical inspections.

Bids will be adjudicated in terms of the Preferential Procurement Regulations, 2022 pertaining to

Preferential Procurement Policy Framework Act, 5/2000 and other applicable legislations and will be

based on 90/10 points scoring system. Preference points will be awarded to service providers based on

Reconstruction and Development Programme - Government Gazette: 16085 (1994) initiatives. The bids

will be valid for a period of one hundred and twenty (120) days from bid closing date. The Council

reserves the right to accept all, some, or none of the bids submitted, either wholly or in part and it is not

obliged to accept the lowest bid.

Completed bid documents complying with the conditions of bid must be sealed and endorsed “Bid

No.: A042 - 2025/26 RE- ADVERTISEMENT: PROVISION OF EXTERNAL SECURITY SERVICES TO NEWCASTLE

MUNICIPALITY FOR A PERIOD OF 36 MONTHS” bearing the name and address of the bidder at the back

of the envelope to be deposited in the official bid box provided in the foyer of Newcastle Municipality –

Municipal Civic Offices (Rates Hall), 37 Murchison Street, 1st floor, Newcastle by no later than 12:00 on

Wednesday, 30 September 2026 where bids will be opened in public. Late quotations or tenders

received by way of facsimile or e-Mail will under no circumstances be considered.

5.1. Bids will be opened on the closing date immediately after the closing time specified in

the bid documents. If requested by any bidder present, the names of the bidders, and if

practical, the total amount of each bid and of any alternative bids will be read out

aloud.

5.2. Details of bids received in time will be recorded in a register which is open to public

inspection.

5.3. Any bid received after the appointed time for the closing of bids will not be considered

but shall be filed unopened with the other bids received, which bid(s) can be returned

to the bidder at his request and cost.

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

8.2 If it is a bid condition that supplies to be produced or services to be rendered should at

any stage during production or execution or on completion be subject to inspection, the

premises of the bidder or contractor shall be open, at all reasonable hours, for inspection

by a representative of the Institution or an organization acting on behalf of the Institution.

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

mention is made in the contract, but during the contract period it is decided that

inspections shall be carried out, the purchaser shall itself make the necessary

arrangements, including payment arrangements with the testing authority concerned.

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

to be in accordance with the contract requirements, the cost of the inspections, tests

and analyses shall be defrayed by the purchaser.

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

contract requirements, irrespective of whether such supplies or services are accepted or

not, the cost in connection with these inspections, tests or analyses shall be defrayed by

the vendor.

8.6 Supplies and services which are referred to in clauses 8.2 and 8.3 and which do not

comply with the contract requirements may be rejected.

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

be rejected if found not to comply with the requirements of the contract. Such rejected

supplies shall be held at the cost and risk of the vendor who shall, when called upon,

remove them immediately at his own cost and forthwith substitute them with supplies

which do comply with the requirements of the contract. Failing such removal, the

rejected supplies shall be returned at the vendor’s cost and risk. Should the vendor fail to

provide the substitute supplies forthwith, the purchaser may, without giving the vendor

further opportunity to substitute the rejected supplies, purchase such supplies as may be

necessary at the expense of the vendor.

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

the contract on account of a breach of the conditions thereof, or to act in terms of

Clause 23 of GCC.

Provision of external security services to newcastle municipality for a period of 36 months

Date Wednesday, 30 September 2026

Time: 12h00

Venue: Municipal Civic Centre Offices (Rates Hall)

Tower Block Building, 37 Murchison Street, 1st Floor

Newcastle, 2940

Sealed bid document must be deposited in the Tender Box provided at the Municipal Civic Centre (Rates Hall), 37

Murchison Street, Newcastle by no later than 12h00 on 30 September 2026 where bids will be opened in public.

1. Checklist 4
2. Bid Notice & Invitation to Bid 5
3. General Conditions of Bid 9
4. General Conditions of Contract 13
5. Special Conditions of Contract 25
6. Authority of Signatory 33
7. Record of Addenda issued 35
8. Banking Details 36
9. Proof of Municipal Good Standing 37
10. Central Supplier Database 39
11. MBD 3.2 - Pricing Schedule – Purchases 40
12. MBD 4 - Declaration of Interest 43
13. MBD 5 – Declaration for procurement above R10 million (All applicable 46

taxes included)

14. MBD 6.1 - Preference Points Claim Form 47
15. MBD 8 - Declaration of Bidder’s Past Supply Chain Management 52

FIRST (1st) FLOOR OF THE NEWCASTLE MUNICIPALITY

Municipal civic centre offices (rates hall)

2.1. Rates and prices offered by the bidder must be written onto the pricing schedule or form

of offer of this document by hand, completed in full and signed by the duly authorised

signatory.

2.2. All prices shall be quoted in South African currency and be INCLUSIVE of VAT.

2.3. Bid prices must include all expenses, disbursements and costs (e.g. transport,

accommodation etc.) which may be required for the execution of the bidder’s

obligations in terms of the Contract. Bid prices shall cover the cost of all general risks,

liabilities and obligations set forth or implied in the Contract, as well as overhead charges

and profit (in the event that the bid is successful), unless otherwise specified.

2.4. All bid prices will be final and binding.

2.4.1. A bid will not be invalidated if the amount in words and the amount in figures do

not correspond,

2.4.2. in which case the amount in words shall be read out at the bid opening and shall

be deemed to be the bid amount; therefore, where there is a discrepancy

between the amount in figures and the amount in words, the amount in words

shall apply.

4.1. Sealed bids, with the “Bid Number and Title” clearly endorsed on the envelope and must

be deposited in the bid box on or before the closing date and time of the bid.

4.2. The bid box is in Municipal Civic Offices, 37 Murchison Street, Rates Hall, 1st Floor,

13.1. No bidder will be refunded any cost or disbursements incurred in respect of the project,

save where the prior written approval of Newcastle Municipality has been obtained in

respect of such expenditure.

13.2. Any authorized disbursements will be refunded at the reasonable and actual cost

determined by Newcastle Municipality. Any expenditure incurred by the successful

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Provision of external security services to newcastle municipality for a period of 36 months

bidder in respect of authorized travel for the project will be refunded in accordance with

the Newcastle Municipality travel policy as applicable from time to time. The rates

payable for the use of private vehicles will be the prevailing rates quoted by the

Payment Terms: Payment Terms

10.1. It is the policy of the Newcastle Municipality to pay all creditors by means of electronic

bank transfers.

10.2. Creditors will be paid within 30 days after receipt of an invoice and statement for the

month in question, detailing all invoices during that month and reflecting the total

amount due by the Municipality. In exceptional circu

Tax Compliance Status TCS PIN: OR CSD No

Tax compliance requirements

Tax Compliance Status (TCS) certificate or Pin may also be made via e

Tax Compliance

Tax Compliance Status Verification Pins issued by SARS of all parties of the Joint Venture

Tax Compliance Pin

Tax Compliance Pin with the bid

tax compliance status shall be verified through the Central Supplier Database

Tax Compliance Pin is not submitted with the bid, the Department shall use the

TCS PIN: OR CSD No

Csd report

CSD number

CSD number must be provided

Central Supplier Database 39

Central Supplier Database (CSD),

Central Supplier Database

Central Supplier Database to verify the tax matters of the bidder

Joint Venture Agreement or Consortiums

2.1. Rates and prices offered by the bidder must be written onto the pricing schedule or form

2. Tax compliance requirements

2.3 Application for the Tax Compliance Status (TCS) certificate or Pin may also be made via e

a separate TCS certificate / Pin / CSD number.

2.7 Where no TCS is available, but the bidder is registered on the Central Supplier Database (CSD),

a CSD number must be provided.

If the answer is “no” to all the above, then it is not a requirement to register for a Tax Compliance

B-BBEE Details: ce Status Verification Pins issued by SARS of all parties of the Joint Venture

or Consortium, and

2. all parties of the Joint Venture or Consortium must submit signed copies of: -

a) The Declaration of Interest Form,

b) The Declaration of Bidder’s Past Supply Chain Management Practices Form,

c) The Certificate of Independent Bid Determination Form, and

3. An undertaking duly signed by all parties of the Joint Venture or Consortium indicating their

intention to enter into an agreement for the purposes of this contract, and

4. A consolidated valid and original or certified copy of their B-BBEE Status Level Verification

Certificate.

Further to the above, the name of the Joint Venture or Consortium must appear on the relevant pages

of the document. Failure to comply with these requirements shall lead to disqualification.

15. Samples for Quality Control

15.1 If the samples are required in terms of the specification, such samples shall be supplied

by the service provider at his/her own cost.

15.2 All samples approved will be retained by the Newcastle Municipality as standards for the

duration of the contract.

16. Tax Compliance Pin

16.1 The bidder must submit a valid Tax Compliance Pin with the bid. Bidders should note

that their tax compliance status shall be verified through the Central Supplier Database

and SARS.

16.2 Where a Tax Compliance Pin is not submitted with the bid, the Department shall use the

Central Supplier Database to verify the tax matters of the bidder.

Provision of external security services to newcastle municipality for a period of 36 months

4. General conditions of contract
5. Definitions

The following terms shall be interpreted as indicated:

1.1 “Closing time” means the date and hour specified in the bidding documents for

3.1 Unless otherwise indicated in the bidding documents, the purchaser shall not be liable

for any expense incurred in the preparation and submission of a bid. Where applicable

a non-refundable fee for documents may be charged.

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

municipality/municipal entity website.

5.1 The vendor 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 vendor in the performance of the contract.

10.1 Delivery of the goods shall be made by the vendor in accordance with the terms

specified in the contract. The details of shipping and/or other documents to be furnished

by the vendor are specified in SCC.

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

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 favourable difference shall on demand be paid forthwith by the

contractor to the State or the State may deduct such amounts from moneys (if any) which may

otherwise be due to the contractor in regard to supplies 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 vendor 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.

or illustrate, but not replace any part of the official bid document or the information furnished

therein.

15.1 The vendor 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 vendor 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 vendor, that may

develop under normal use of the supplied goods in the conditions prevailing in the

country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion

thereof as the case may be, have been delivered to and accepted at the final

destination indicated in the contract, or for eighteen (18) months after the date of

shipment from the port or place of loading in the source country, whichever period

concludes earlier, unless specified otherwise in SCC.

15.3 The purchaser shall promptly notify the vendor in writing of any claims arising under this

warranty.

15.4 Upon receipt of such notice, the vendor shall, within the period specified in SCC and with

all reasonable speed, repair or replace the defective goods or parts thereof, without

costs to the purchaser.

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

specified in SCC, the purchaser may proceed to take such remedial action as may be

necessary, at the vendor’s risk and expense and without prejudice to any other rights

which the purchaser may have against the vendor under the contract.

16. Payment

Provision of external security services to newcastle municipality for a period of 36 months

16.1 The method and conditions of payment to be made to the vendor under this contract

shall be specified in SCC.

16.2 The vendor 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 vendor.

16.4 Payment will be made in Rand unless otherwise stipulated in SCC.

17. Prices

Prices charged by the vendor for goods/works delivered and/or services performed under the

contract shall not vary from the prices quoted by the vendor in this bid, with the exception of

any price adjustments authorized in SCC or purchaser’s request for bid validity extension, as the

case may be.

18. Variation Orders

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 if there is no

escalation in price.

19. Assignment

The vendor shall not assign, in whole or in part, its obligations to perform under the contract,

except with the purchaser’s prior written consent.

20. Subcontractors

The vendor shall notify the purchaser in writing of all subcontractors awarded under this contract

if not already specified in the bid. Such notification, in the original bid or later, shall not relieve

the vendor from any liability or obligation under the contract.

21. Delays in the vendor’s performance

21.1 Delivery of the goods/works and/or performance of services shall be made by the vendor

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 vendor or its subcontractor(s)

should encounter conditions impeding timely delivery of the goods/works and/or

performance of services, the vendor shall promptly notify the purchaser in writing of the

fact of the delay, it’s likely duration and its cause(s). As soon as practicable after receipt

of the vendor’s notice, the purchaser shall evaluate the situation and may at his

discretion extend the vendor’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.

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Provision of external security services to newcastle municipality for a period of 36 months

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

services from a national department, provincial department, or a local authority.

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

essential services executed if an emergency arises, the vendor’s point of supply is not

situated at or near the place the supplies are required or the vendor’s supplies or goods

are not readily available.

21.5 Except as provided under GCC Clause 25, a delay by the vendor in the performance of

its delivery obligations shall render the vendor liable to the imposition of penalties,

pursuant to GCC Clause 22, unless an extension of time is agreed upon pursuant to GCC

Clause 21.2 without the application of penalties.

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

purchaser shall, without cancelling the contract, be entitled to purchase supplies of a

similar quality and up to the same quantity in substitution of the goods not supplied in

conformity with the contract and to return any goods delivered later at the vendor’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 vendor.

22. Penalties

Subject to GCC Clause 25, if the vendor 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/works and/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 vendor, may terminate this contract in whole or in part:

i. if the vendor 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;

ii. if the vendor fails to perform any other obligation(s) under the contract; or

iii. if the vendor, in the judgement 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

and/or services similar to those undelivered, and the vendor shall be liable to the

purchaser for any excess costs for such similar goods/works and/or services. However, the

vendor 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 vendor by prohibiting such vendor from

doing business with the public sector for a period not exceeding 10 years.

Provision of external security services to newcastle municipality for a period of 36 months

23.4 If a purchaser intends imposing a restriction on a vendor or any person associated with

the vendor, the vendor 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

vendor fail to respond within the stipulated fourteen (14) days the purchaser may regard

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

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

discretion of the Accounting Officer / Authority, also be applicable to any other

enterprise or any partner, manager, director or other person who wholly or partly

exercises or exercised or may exercise control over the enterprise of the first-mentioned

person, and with which enterprise or person the first-mentioned person, is or was in the

opinion of the Accounting Officer / Authority actively associated.

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

imposition, furnish the National Treasury, with the following information:

i. the name and address of the vendor and / or person restricted by the purchaser;

ii. the date of commencement of the restriction

iii. the period of restriction; and

iv. the reasons for the restriction.

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

persons prohibited from doing business with the public sector.

23.7 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 such person’s name be endorsed on the Register for Tender 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 a period not less than five years and not more

than 10 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. Antidumping and countervailing duties and rights

When, after the date of bid, provisional payments are required, or antidumping 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 favourable difference shall on demand be paid forthwith by the

contractor to the State or the State may deduct such amounts from moneys (if any) which may

otherwise be due to the contractor in regard to supplies 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 vendor shall not be

liable for forfeiture of its performance security, damages, or termination for default if

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and to the extent that his delay in performance or other failure to perform his

obligations under the contract as a result of an event of Force Majeure.

25.2 If a force major situation arises, the Vendor shall promptly notify the Purchaser in

writing of such condition and the cause thereof. Unless otherwise directed by the

Purchaser in writing, the Vendor 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 on insolvency

26.1 The purchaser may at any time terminate the contract by giving written notice to the

vendor if the vendor becomes bankrupt or otherwise insolvent. In this event, termination

will be without compensation to the vendor, 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 vendor 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 vendor 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 Mediation proceedings shall be conducted in accordance with the rules of procedure

specified in the SCC.

27.5 Notwithstanding any reference to mediation and/or court proceedings herein,

i. the parties shall continue to perform their respective obligations under the

contract unless they otherwise agree; and

ii. the purchaser shall pay the vendor any monies due the vendor.

28. Limitation of Liability

28.1 Except in cases of criminal negligence or willful misconduct, and in the case of

infringement pursuant to Clause 6;

(a) the vendor 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 vendor to pay penalties and/or damages to the

purchaser; and

(b) the aggregate liability of the vendor 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.

Provision of external security services to newcastle municipality for a period of 36 months

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 in SCC.

31. Notices

31.1 Every written acceptance of a bid shall be posted to the vendor 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 vendor 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 vendor 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 the purchaser must be in possession of a tax clearance certificate,

submitted by the bidder. This certificate must be an original issued by the South African

Revenue Services.

33. Transfer of contracts

33.1 The contractor shall not abandon, transfer, cede, assign, or sublet a contract or part

thereof without the written permission of the purchaser.

34. Amendment of contracts

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

provisions thereof shall be valid and of any force unless such agreement to amend or

vary is entered into in writing and signed by the contracting parties. Any waiver of the

requirement that the agreement to amend or vary shall be in writing, shall also be in

writing.

35. Prohibition of restrictive practices

35.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. , as amended, an

agreement between, or concerted practice by, firms, or a decision by an association of

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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 (or bid rigging).

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 the Competition Act

No. .

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.

Provision of external security services to newcastle municipality for a period of 36 months

5. Special conditions of contract

6. I/We hereby bid to supply all or any of the supplies and/or to render all or any of the services

described in the attached documents to the Newcastle Municipality on the terms and

conditions and be in accordance with the specifications stipulated in the bid documents (and

which shall be taken as part of and be incorporated into this bid) at the prices and on the terms

regarding time for delivery and/or execution inserted therein.

2. I/we agree that:

a) the offer herein shall remain binding upon me and open for acceptance by the Newcastle

Municipality during the validity period indicated and calculated from the closing time of

the bid;

b) this bid and its acceptance shall be subject to Supply Chain Management Regulations, the

Municipal Finance Management Act, No. , the Newcastle Municipality Supply

Chain Management Policy and the General and Special Conditions of Contract, with

which I/we am fully acquainted;

c) if I/we withdraw my bid within the period for which I/we have agreed that the bid shall

remain open for acceptance or fail to fulfill the contract when called upon to do so, the

Municipality may, without prejudice to its other rights, agree to the withdrawal of my bid or

cancel the contract that may have been entered into between the Municipality and

myself. I/we will then pay to the Municipality any additional expenses incurred by the

Municipality having either to accept any less favorable bid or, if fresh bids have to be

invited, the additional expenditure incurred by the invitation of fresh bids and by the

subsequent acceptance of any less favorable bid. The Municipality shall have the right to

recover such additional expenditure by set-off against monies which may be due to me

under this or any other bid or contract or against any guarantee or deposit that may have

been furnished by me or on my behalf for the due fulfillment of this or any other bid or

contract and pending the ascertainment of the amount of such additional expenditure to

retain such monies, guarantee or deposit as security for any loss the Municipality may

sustain by reason of my default;

d) if my bid is accepted, the acceptance may be communicated to me by registered post,

and that the South African Post Office Limited shall be treated as delivery agent to me;

e) the law of the Republic of South Africa shall govern the contract created by the

acceptance of my bid and I choose domicile citadel et executant in the Republic at (full

physical address):

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

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

I/we furthermore confirm that I/we have satisfied myself/ourselves as to the correctness and

validity of the bid: that the price(s), rate(s) and preference quoted cover all of the work / item(s)

and my obligations under a resulting contract, and I accept that any mistakes regarding the

price(s) and calculations will be at my risk.

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3. I/we hereby accept full responsibility for the proper execution and fulfillment of all obligations

and conditions devolving on me under this agreement, as the Principal(s) liable for the due

fulfillment of this contract.

4. I/we agree that any action arising from this contract may in all respects be instituted against

me and I/we hereby undertake to satisfy fully any sentence or judgment which may be

pronounced against me as a result of such action.

5. Are you duly authorized to sign the bid?

• Yes NO

6. I/we confirm that I/we have declared all and any interest that I or any persons related to my

business has with regard to this bid or any related bids by completion of the Declaration of

Interest Section.

7. Has the Declaration of Interest been duly completed and included with the bid forms?

*Yes NO

• Delete whichever is not applicable.

8. Certification of correctness of information supplied in this document

9.1 I/we, THE UNDERSIGNED, WHO WARRANT THAT I AM DULY AUTHORIZED TO DO SO ON BEHALF OF

The bidder, certify that the information supplied in terms of this document is correct

And true, that the signatory to this document is duly authorized and acknowledge

That:

9.2 The bidder will furnish documentary proof regarding any bidding issue to the satisfaction of the

Municipality, if requested to do so.

9.3 If the information supplied is found to be incorrect and/or false then the Municipality, in addition

to any remedies it may have, may:-

a) Recover from the contractor all costs, losses or damages incurred or sustained by the

Municipality as a result of the award of the contract, and/or

b) Cancel the contract and claim any damages which the Municipality may suffer by having

to make less favorable arrangements after such cancellation.

Bidder`s name :____________________________________________________________________

Bidder’s representative : _____________________________________________________________

Signature : ______________________________________________________

Date : ______________________________________________________

Witnesses

1. Name :________________________________ Signature :______________________

Date :___________________________________________________

Provision of external security services to newcastle municipality for a period of 36 months

2. Name :________________________________ Signature :______________________

Date :___________________________________________________

Newcastle municipality

Continuation of special conditions of contract

Rules in respect of bid documents

'Council' shall mean the Newcastle Municipality

'Committee' shall mean that Committee of the Council whose responsibility it is to

consider tenders and advise Council on acceptance or otherwise.

‘Municipal Manager’ shall mean the Municipal Manager of the Local Council of Newcastle or such

person appointed by Council to act in that capacity.

'Head of Department’ shall mean the head of the Council department concerned with the

particular tender or such person appointed by Council to act in that capacity.

All bidders are hereby advised that in the event that the bid is accepted by the Council all conditions and

stipulations set out this bid and in all forms, schedule and/or annexure hereto, will be the contract between

the Bidder and the Municipality.

1. Bidders must acquaint themselves fully on the Rules, General Conditions and Special Conditions of

bid documents.

2. Failure on the part of the Bidder to sign this bid form and thus to acknowledge and accept the

conditions in writing or to complete the attached forms, questionnaires and specifications and

proposals in all respects, may in the sole discretion of the Municipality invalidate the bid.

3. Failure to sign the Form of Offer and MBD 1 Form will invalidate the bid, provided that it is the only

acceptable bid received, Council may recommend it be considered as an offer after signature

by the bidder.

Bidders shall ensure that they have been provided with all the documents and drawings. Bidders

must advise the Department concerned immediately if there is any duplication or obscure typing

or if there is any doubt as to the meaning of any words, clause, sentence, paragraph, drawing or

any other particulars and have the matter rectified, otherwise it will be assumed correct and no

liabilities whatsoever will be admitted in respect of errors in the bid due to the foregoing.

4. Bidders shall quote delivery periods for the products specified and shall supply all the information

called for on the attached data schedules.

Where applicable, Bidders shall provide at the time of bidding, details of the guarantee given with

the products offered together with the period for which the guarantee is effective from date of

delivery.

6. No bid will be accepted unless made out on the forms provided.

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7. A signed copy of these conditions and specifications must accompany the bid.

8. Bids received after 12:00 on the closing date of this bid will not be accepted.

9. After the bids have been opened, a bid may not be withdrawn by the person or firm submitting it

except with the concurrence of the Council.

10. Council reserves the right to accept all or a portion only of any tender.

11. Should there be any difference between the prices or particulars contained in the official Form of

bid and those contained in the covering letter from the bidder the prices and particulars

contained in the official form of bid, in all circumstances, prevail.

12. If any of the conditions on this bid form are in conflict with any special conditions, stipulations or

provisions incorporated in the bid, such special conditions, stipulations or provisions shall apply.

13. Bids must be submitted in sealed envelopes.

14. The bid number and title of the bid must appear on the front of the sealed envelope in which the

bid is submitted.

15. The Municipality shall not be obliged to accept the lowest or any bid. It is important that only

Bidders with the necessary experience, qualifications and technical ability to carry out the

requirements of this bid submit bids in regard hereto. The Municipality will consider all prices and

submissions made by the bidders. Should the Municipality require that a specific price and/or

submission be reconsidered, it reserves the right to do so, subject to the Municipality requesting all

Bidders to submit such a request or revision of the Bid Proposal.

16. The bidder undertakes that it will make itself and its members, officials and employees and agents

aware of the appropriate legislation, regulations and by-laws of the Municipality that might have

implications on the Bidder’s activities in terms hereof.

17. Neither the Municipality nor any official of the Municipality will be held responsible for loss of a

potential opportunity to bid due to the failure of the Bidder complying with any of the requirements

of this bid.

18. The covering letter or other matter submitted with the official bid document may explain, amplify

or illustrate, but not replace any part of the official bid document or the information furnished

therein.

19. All data/information supplied by the Municipality will be received by the Bidder at his/her risk. It

will be the responsibility of the Bidder to check and verify the accuracy of the data/information

supplied by the Municipality. The Municipality will not be held responsible for any inaccurate or

incomplete data/information.

20. Two envelope system WILL NOT be applicable on this project.

21. Payment of municipal services

Proof must be produced, together with the bidding documents that the entity is not indebted to the

Municipality or Municipal area in which they are staying, for a period of more than 90 days for services

rendered / rate payable. Bidders residing on farms with no municipal services should submit a letter

from their Induna / owner stating the above.

Provision of external security services to newcastle municipality for a period of 36 months

22. Invitation to bid

Bids shall be invited by the Municipal Manager in terms of the Supply Chain Management Policy of

the Newcastle Municipality.

23. Acceptance of bids

After the opening of bids, the official designated by the Municipal Manager shall forward such tender

to the Head of Department for whom such tenders have been invited. The Head of Department

concerned will then consider the tenders and submit them to the appropriate Committee with the

written comments of the Chief Financial Officer and with details of any irregularity or defect in

connection with the bid documents or matters relating to the calling of bids together with the

recommendation for consideration by the Committee.

24. Bid documents

a. Where applicable all bid documents and drawings are to be returned at the time of bidding

except that where an additional copy of the Schedule of Quantities is provided, a copy may

be retained by the tender for his records.

The original Schedule of Quantities must be forwarded to the Newcastle Municipality

b. After awarding the bid, no documents will be returned to any unsuccessful bidder, but will be

retained by the Municipal Manager.

c. All bid documents must be completed in black ink and should any alteration, omission, erasure

or addition be made, it will not be recognised unless authenticated with the initials of the bidder

and those of the witnesses of his signature. Bidders may, however, qualify their bid by a letter

accompanying the bid documents.

i. Any irregularity, incompleteness or obscurity in a bid renders it liable for rejection.

ii. Failure to sign the bid document will invalidate the bid , provided that if it is the only

acceptable bid received, the Head of Department may recommend that it be

considered as an offer after signature by the bidder.

iii. Bidders shall check that they have been provided with all the documents and drawings.

Bidders must advise the Department concerned immediately if there is any duplication

or obscure typing or if there is any doubt as to the meaning of any words, clause,

sentence, paragraph, drawing or any other particulars and have the matter rectified,

otherwise it will be taken for granted that there are no doubts or errors, and no liabilities

whatsoever will be admitted in respect of errors in the tender due to the foregoing.

25. Deposits

a. A sum as stated in the invitation to bid being a deposit for the supply of the bid documents.

The bidder must obtain a receipt for the deposit amount from the office of the Chief Financial

Officer prior to receiving the bid documents.

b. A deposit in the sum stated in the bid documents is non-refundable.

c. The Head of the Department concerned, in the event of receiving any deposits, shall forthwith

hand to the Chief Financial Officer any deposits or security received.

26. Late bids

a. Any bid received after the closing date and time advertised for the receipt of bids shall not be

considered, provided that a late bid may be admitted by the Council when :

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I. in the case of a bid submitted through the post, there is proof that the bid was posted in

sufficient time to reach the Municipal Manager before the closing date and time advertised

for the receipt of bid and the bidder has taken reasonable steps against ordinary delays and

was in no way to blame for the late receipt of his bid;

II. in the case of a bid delivered by hand, there is proof that the bidder had taken reasonable

steps against ordinary delays and was in no way to blame for the late delivery.

b. The Council may accept a bid which is received late and has for that reason been disallowed

in terms of the provisions of this rule, provided it was the only acceptable bid received.

27. Communication prohibited

a. Except where clarification of a bid is necessary or whenever it is necessary to approach a

bidder for an extension of the binding period of a bid, no communication, without written

authority of the Council, shall take place between the bidder and any member or officer of

Council on a question affecting any matter which is the subject of a bid between the closing

date and time of a bid and the acceptance by Council of the bid. When clarification is

required or an extension of time, this may be requested by a Council Officer on the authority

of his Head of Department.

b. In no case shall bids be returned or referred to bidders for amendment or completion in any

respect without the written authority of the Council.

28. Council not obliged to accept any bid

Council does not bind itself to accept the lowest or any bid and where the bid documents allow

for such cases, reserves the right to accept a portion only of any bid.

Council will not compensate the bidder in the preparation and submission of his bid. Council

reserves the right to purchase goods outside this contract if and when the need arise

29. Deviation from contract

Council reserves the right to deviate or procure goods or services outside of this contract when the

need arises.

30. Alternatives

The bidder may submit alternatives which, in his/her opinion, are to the Council’s advantage

economically and technically.

31. Contract duration

The contract will be 36 months from the date of appointment.

32. Post award product compliance procedures

The following post award product compliance procedure will apply:

i. In the case the equipment has been discontinued / replaced with a new model, the service

provider(s) will be required to submit letters from the Manufacturer / Supplier stating the

changes and the approval be obtained from the Accounting Officer prior to the executions of

such changes.

ii. Furthermore, service provider(s) are expected to disclose information on the following:

• Financial Implications & Price Variances

attached?

MBD 3.1 - Pricing Schedule – Firm Prices (Purchases) Yes No

Is the form duly completed and signed?

MBD 3.2 - Pricing Schedule – Non-Firm Prices (Purchases) Yes No

Is the form duly completed and signed?

MBD 4 Declaration of Interest Yes No

Is the form duly completed and signed?

MBD 6.1 Preference Points Claim Form Yes No

Is the form duly completed and signed?

MBD 8 Declaration of Past Supply Chain Practices Yes No

Is the form duly completed and signed?

MBD 9 Certificate of Independent Bid Determination Yes No

Is the form duly completed and signed?

documentation together with the bid: -

1. A valid Tax Compliance Status Verification Pins issued by SARS of all parties of the Joint Venture

or Consortium, and

2. all parties of the Joint Venture or Consortium must submit signed copies of: -

a) The Declaration of Interest Form,

b) The Declaration of Bidder’s Past Supply Chain Management Practices Form,

c) The Certificate of Independent Bid Determination Form, and

3. An undertaking duly signed by all parties of the Joint Venture or Consortium indicating their

intention to enter into an agreement for the purposes of this contract, and

4. A consolidated valid and original or certified copy of their B-BBEE Status Level Verification

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

vendor, 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 Vendor 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 vendor 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 vendor 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

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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 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 vendor 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 labour, materials,

components, and machinery and includes other related value-adding activities.

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

rendering of a service.

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

1.21 “Purchaser” means the Institution purchasing the goods/works and/or service.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means those functional services ancillaries to the supply of the goods, such as

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

provision of technical assistance, training, catering, gardening, security, maintenance,

and other such obligations of the vendor covered under the contract.

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

writing.

only so far as may be necessary for purposes of such performance.

5.2 The vendor 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 required by the

purchaser.

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

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

purchaser, if so required by the purchaser.

5.5 The vendor 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.

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

patent, trademark, or industrial design rights arising from use of the goods or any part

thereof by the purchaser.

7.1 The proceeds of the performance security shall be payable to the purchaser as

compensation for any loss resulting from them vendor’s failure to complete his obligations

under the contract.

7.2 The performance security shall be denominated in the currency of the contract, or in a

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freely convertible currency acceptable to the purchaser and shall be in one of the

following forms:

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

located in the purchaser’s country or abroad, acceptable to the purchaser, in the

form provided in the bidding documents or another form acceptable to the

purchaser; or

b) a cashier’s or certified cheque.

7.3 The performance security will be discharged by the purchaser and returned to the

vendor not later than thirty (30) days following the date of completion of the vendor’s

performance obligations under the contract, including any warranty obligations, unless

otherwise specified in SCC.

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

additional services, if any, specified in SCC:

a) Performance or supervision of on-site assembly and/or commissioning of the supplied

goods.

b) Furnishing of tools required for assembly and/or maintenance of the supplied goods.

c) Furnishing of a detailed operations and maintenance manual for each appropriate unit

of the supplied goods.

d) Performance or supervision or maintenance and/or repair of the supplied goods, for a

period agreed by the parties, provided that this service shall not relieve the vendor of

any warranty obligations under this contract.

e) Training of the purchaser’s personnel, at the vendor’s plant and/or

f) On-site, in assembly, start-up, operation, maintenance, and/or repair of the supplied

goods.

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13.2 Prices charged by the vendor 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 vendor for similar services.

14.1 Specified in SCC, the vendor may be required to provide any or all of the following

materials, notifications, and information pertaining to spare parts manufactured or

distributed by the vendor:

a) such spare parts as the purchaser may elect to purchase from the vendor,

provided that this election shall not relieve the vendor of any warranty obligations

under the contract; and

b) in the event of termination of production of the spare parts:

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

sufficient time to permit the purchaser to procure needed requirements;

and

(ii) following such termination, furnishing at no cost to the purchaser, the

blueprints, drawings, and specifications of the spare parts, if requested.

15. Warranty

15.1 The vendor 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 vendor 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 vendor, that may

develop under normal use of the supplied goods in the conditions prevailing in the

country of final destination.

15.2 This warranty shall remain valid for twelve (12) months after the goods, or any portion

thereof as the case may be, have been delivered to and accepted at the final

destination indicated in the contract, or for eighteen (18) months after the date of

shipment from the port or place of loading in the source country, whichever period

concludes earlier, unless specified otherwise in SCC.

15.3 The purchaser shall promptly notify the vendor in writing of any claims arising under this

warranty.

15.4 Upon receipt of such notice, the vendor shall, within the period specified in SCC and with

all reasonable speed, repair or replace the defective goods or parts thereof, without

costs to the purchaser.

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

specified in SCC, the purchaser may proceed to take such remedial action as may be

necessary, at the vendor’s risk and expense and without prejudice to any other rights

which the purchaser may have against the vendor under the contract.

if not already specified in the bid. Such notification, in the original bid or later, shall not relieve

the vendor from any liability or obligation under the contract.

21. Delays in the vendor’s performance

21.1 Delivery of the goods/works and/or performance of services shall be made by the vendor

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 vendor or its subcontractor(s)

should encounter conditions impeding timely delivery of the goods/works and/or

performance of services, the vendor shall promptly notify the purchaser in writing of the

fact of the delay, it’s likely duration and its cause(s). As soon as practicable after receipt

of the vendor’s notice, the purchaser shall evaluate the situation and may at his

discretion extend the vendor’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.

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

services from a national department, provincial department, or a local authority.

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

essential services executed if an emergency arises, the vendor’s point of supply is not

situated at or near the place the supplies are required or the vendor’s supplies or goods

are not readily available.

21.5 Except as provided under GCC Clause 25, a delay by the vendor in the performance of

its delivery obligations shall render the vendor liable to the imposition of penalties,

pursuant to GCC Clause 22, unless an extension of time is agreed upon pursuant to GCC

Clause 21.2 without the application of penalties.

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

purchaser shall, without cancelling the contract, be entitled to purchase supplies of a

similar quality and up to the same quantity in substitution of the goods not supplied in

conformity with the contract and to return any goods delivered later at the vendor’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 vendor.

Subject to GCC Clause 25, if the vendor 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/works and/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 vendor, may terminate this contract in whole or in part:

i. if the vendor 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;

ii. if the vendor fails to perform any other obligation(s) under the contract; or

iii. if the vendor, in the judgement 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

and/or services similar to those undelivered, and the vendor shall be liable to the

purchaser for any excess costs for such similar goods/works and/or services. However, the

vendor 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 vendor by prohibiting such vendor from

doing business with the public sector for a period not exceeding 10 years.

Provision of external security services to newcastle municipality for a period of 36 months

23.4 If a purchaser intends imposing a restriction on a vendor or any person associated with

the vendor, the vendor 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

vendor fail to respond within the stipulated fourteen (14) days the purchaser may regard

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

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

discretion of the Accounting Officer / Authority, also be applicable to any other

enterprise or any partner, manager, director or other person who wholly or partly

exercises or exercised or may exercise control over the enterprise of the first-mentioned

person, and with which enterprise or person the first-mentioned person, is or was in the

opinion of the Accounting Officer / Authority actively associated.

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

imposition, furnish the National Treasury, with the following information:

i. the name and address of the vendor and / or person restricted by the purchaser;

ii. the date of commencement of the restriction

iii. the period of restriction; and

iv. the reasons for the restriction.

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

persons prohibited from doing business with the public sector.

23.7 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 such person’s name be endorsed on the Register for Tender 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 a period not less than five years and not more

than 10 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

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the vendor shall not be

liable for forfeiture of its performance security, damages, or termination for default if

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and to the extent that his delay in performance or other failure to perform his

obligations under the contract as a result of an event of Force Majeure.

25.2 If a force major situation arises, the Vendor shall promptly notify the Purchaser in

writing of such condition and the cause thereof. Unless otherwise directed by 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

vendor if the vendor becomes bankrupt or otherwise insolvent. In this event, termination

will be without compensation to the vendor, 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 vendor 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 vendor 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 Mediation proceedings shall be conducted in accordance with the rules of procedure

specified in the SCC.

27.5 Notwithstanding any reference to mediation and/or court proceedings herein,

i. the parties shall continue to perform their respective obligations under the

contract unless they otherwise agree; and

ii. the purchaser shall pay the vendor any monies due the vendor.

28.1 Except in cases of criminal negligence or willful misconduct, and in the case of

infringement pursuant to Clause 6;

(a) the vendor 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 vendor to pay penalties and/or damages to the

purchaser; and

(b) the aggregate liability of the vendor 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.

Provision of external security services to newcastle municipality for a period of 36 months

invited, the additional expenditure incurred by the invitation of fresh bids and by the

subsequent acceptance of any less favorable bid. The Municipality shall have the right to

recover such additional expenditure by set-off against monies which may be due to me

under this or any other bid or contract or against any guarantee or deposit that may have

been furnished by me or on my behalf for the due fulfillment of this or any other bid or

contract and pending the ascertainment of the amount of such additional expenditure to

retain such monies, guarantee or deposit as security for any loss the Municipality may

sustain by reason of my default;

d) if my bid is accepted, the acceptance may be communicated to me by registered post,

and that the South African Post Office Limited shall be treated as delivery agent to me;

e) the law of the Republic of South Africa shall govern the contract created by the

acceptance of my bid and I choose domicile citadel et executant in the Republic at (full

physical address):

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called for on the attached data schedules.

5. Guarantee

the products offered together with the period for which the guarantee is effective from date of

delivery.