How will bids be evaluated?

Evaluation uses the 80/20 or 90/10 Preferential Procurement Regulations 2022 system. Points are split as follows: Price (80 or 90 points), Specific Goals (20 or 10 points). - Price points formula for procurement of goods/services: Ps = 80 or 90 × (1 - (Pt - Pmin) / Pmin), where Pt = your price, Pmin = lowest acceptable tender. - Price points formula for disposal/leasing/income-generating contracts: Ps = 80 or 90 × (1 + (Pt - Pmax) / Pmax), where Pt = your price, Pmax = highest acceptable tender. Specific Goals (20 points total): - Locality: Kopanong Local Municipality (10), Xhariep District Municipality (8), Free State outside Xhariep (6), outside Free State (4). - Black Ownership: 81-100% (10), 51-80% (8), 01-50% (6), 0% (0). Note: If the 80/20 or 90/10 system applicability is unclear, the organ of state will use the lowest/highest acceptable tender to determine the system post-submission.

What compliance and legal requirements must bidders meet?

Mandatory compliance with Preferential Procurement Regulations 2022: - Submit the completed MBD 6.1 Preference Points Claim Form with your tender. - Study all general conditions, definitions, and directives before completing the form. - Provide proof for specific goals (locality and Black ownership) to claim points. Failure to submit proof results in 0 points for those goals and scoring only on price. Required documentation for locality points: - Municipal rates and taxes statement (not older than 3 months); OR - Valid lease agreement (company name, signed, not expired at closing date); OR - Official bank letter confirming registered business address. - For rural areas: Municipal letter confirming no rates/taxes liability OR signed letter from the chief. Required documentation for Black ownership points: - Copy of company registration and/or shareholder certificate. - Copy of Identity Document (ID) for Black ownership claims. Declaration requirements: - Provide company/firm name, registration number, and type (e.g., Partnership, Close Corporation, (Pty) Ltd). - Authorised signatory must certify: - Information is true and correct. - Preference points comply with general conditions. - Documentary proof may be required post-award. - Fraudulent claims or non-compliance may result in: disqualification, cost recovery, contract cancellation, 10-year restriction from state business, or criminal prosecution.

RFQ: Equipment - Xhariep District Municipality Free State

Evaluation Criteria

Source: MBD 6.1 IN TERMS OF PPR2022.pdf (TENDER)

Evaluation uses the 80/20 or 90/10 Preferential Procurement Regulations 2022 system. Points are split as follows: Price (80 or 90 points), Specific Goals (20 or 10 points).

Price points formula for procurement of goods/services: Ps = 80 or 90 × (1 - (Pt - Pmin) / Pmin), where Pt = your price, Pmin = lowest acceptable tender.
Price points formula for disposal/leasing/income-generating contracts: Ps = 80 or 90 × (1 + (Pt - Pmax) / Pmax), where Pt = your price, Pmax = highest acceptable tender.

Specific Goals (20 points total):

Locality: Kopanong Local Municipality (10), Xhariep District Municipality (8), Free State outside Xhariep (6), outside Free State (4).
Black Ownership: 81-100% (10), 51-80% (8), 01-50% (6), 0% (0).

Note: If the 80/20 or 90/10 system applicability is unclear, the organ of state will use the lowest/highest acceptable tender to determine the system post-submission.

Compliance Requirements

Source: MBD 6.1 IN TERMS OF PPR2022.pdf (TENDER)

Mandatory compliance with Preferential Procurement Regulations 2022:

Submit the completed MBD 6.1 Preference Points Claim Form with your tender.
Study all general conditions, definitions, and directives before completing the form.
Provide proof for specific goals (locality and Black ownership) to claim points. Failure to submit proof results in 0 points for those goals and scoring only on price.

Required documentation for locality points:

Municipal rates and taxes statement (not older than 3 months); OR
Valid lease agreement (company name, signed, not expired at closing date); OR
Official bank letter confirming registered business address.
For rural areas: Municipal letter confirming no rates/taxes liability OR signed letter from the chief.

Required documentation for Black ownership points:

Copy of company registration and/or shareholder certificate.
Copy of Identity Document (ID) for Black ownership claims.

Declaration requirements:

Provide company/firm name, registration number, and type (e.g., Partnership, Close Corporation, (Pty) Ltd).
Authorised signatory must certify:
Information is true and correct.
Preference points comply with general conditions.
Documentary proof may be required post-award.
Fraudulent claims or non-compliance may result in: disqualification, cost recovery, contract cancellation, 10-year restriction from state business, or criminal prosecution.

B-BBEE Requirements

Source: MBD 6.1 IN TERMS OF PPR2022.pdf (TENDER)

B-BBEE-related preference points are awarded for Black ownership as part of specific goals:

81-100% Black Owned: 10 points.
51-80% Black Owned: 8 points.
01-50% Black Owned: 6 points.
0% Black Owned: 0 points.

Required proof for claims:

Copy of company registration and/or shareholder certificate.
Copy of Identity Document (ID) for Black ownership verification.

Note: If the 80/20 or 90/10 system applicability is unclear, the organ of state will determine the system post-submission using the lowest/highest acceptable tender. Points for specific goals must be indicated for both systems in such cases. Failure to submit proof results in 0 points for those goals.

Contractual Terms

Source: MBD 6.1 IN TERMS OF PPR2022.pdf

Contractual obligations include:

Submission of accurate company details: name, registration number, and type (e.g., Partnership, Close Corporation, (Pty) Ltd).
Certification by an authorised signatory that:
All information provided is true and correct.
Preference points claimed comply with the tender’s general conditions.
Documentary proof may be required post-award to substantiate claims.
Consequences of fraudulent claims or non-compliance:
Disqualification from the tendering process.
Recovery of costs, losses, or damages incurred by the organ of state.
Contract cancellation and claim for damages.
Recommendation to restrict the bidder, shareholders, or directors from obtaining state business for up to 10 years.
Potential criminal prosecution.

Section

Source: MBD 6.1 IN TERMS OF PPR2022.pdf

Price points are calculated using the following formulas:

For procurement of goods/services: Ps = 80 or 90 × (1 - (Pt - Pmin) / Pmin), where Pt = your price, Pmin = lowest acceptable tender.
For disposal/leasing/income-generating contracts: Ps = 80 or 90 × (1 + (Pt - Pmax) / Pmax), where Pt = your price, Pmax = highest acceptable tender.

DocumentMBD4.pdf

Contact Information

Source: MBD4.pdf (TENDER)

Postal Address: Private Bag X 136, TROMPSBURG, 9913.
Tel: (051) 713 9300.
Fax: (051) 713 0461.
Email: [email protected].
Website: www.xhariep.gov.za.

Submission Guidelines

Source: MBD4.pdf (TENDER)

Submit the completed MBD 4 Declaration of Interest form with your bid. Failure to do so may result in disqualification.
The form requires: full name, identity number, and position of the bidder/representative; company registration, tax, and VAT numbers; names, identity numbers, and state employee numbers of all directors/trustees/shareholders; declarations of current/past state service, relationships with state employees involved in evaluation/adjudication, and interests in related businesses.
A signed schedule with full details of directors/trustees/members/shareholders must be included.

Returnable Documents

Source: MBD4.pdf (TENDER)

You must complete and submit the MBD 4 Declaration of Interest form. Required details include: full name, identity number, and position in the company of the bidder or representative; Company Registration Number, Tax Reference Number, and VAT Registration Number; names, identity numbers, and state employee numbers of all directors/trustees/shareholders; declarations regarding current/past service in the state and relationships with state employees involved in the evaluation; declarations regarding interests of company principals in the state or in other related businesses; a signed schedule with full details of directors/trustees/members/shareholders.

Evaluation Criteria

Source: MBD4.pdf (TENDER)

Bidders currently 'in the service of the state' (as defined by MSCM Regulations) are ineligible and will be excluded.
Bidders with kinship or other relationships to state employees involved in evaluation/adjudication may still bid but must declare these relationships.
Shareholders actively involved in management or with control over the company must be disclosed.
Bidders who were in state service in the past 12 months must disclose this.
Bidders must declare any relationship (family, friend, or other) with state employees involved in evaluation/adjudication.

Compliance Requirements

Source: MBD4.pdf (TENDER)

Bids will not be accepted from persons 'in the service of the state' as defined by MSCM Regulations. This includes: members of municipal councils, provincial legislatures, Parliament, officials of municipalities/municipal entities, employees of national/provincial departments/public entities, and members of accounting authorities.
Persons with kinship to state employees may bid but must declare their position in relation to the evaluating/adjudicating authority.
A 'shareholder' is defined as a person who owns shares and is actively involved in the management and control of the company.
You must complete the MBD 4 Declaration of Interest form, covering current/past state service, relationships with state employees, and interests of company principals in the state or related businesses.

Requirements

Source: MBD4.pdf (TENDER)

No bid will be accepted from persons 'in the service of the state' as defined by MSCM Regulations.
Persons with kinship to state employees may bid but must declare their position to the evaluating/adjudicating authority.
You must understand the MSCM Regulations definition of 'in the service of the state'.
A 'shareholder' is defined as a person who owns shares and is actively involved in the management and control of the company.

Request for quotation: equipment supply with mandatory declaration of interest for xhariep district municipality

Eligibility Criteria

Request for quotation: equipment supply with mandatory declaration of interest for xhariep district municipality

Eligibility Criteria

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Critical Requirements

Regulatory Bodies

Typical Documents

Core procurement rules

Broad-Based Black Economic Empowerment Act (B-BBEE Act)

Constitution of the Republic of South Africa, 1996 – Section 217

Preferential Procurement Policy Framework Act (PPPFA)

Prevention and Combating of Corrupt Activities Act (PRECCA)

Public Procurement Act, 2024 (PPA)

Promotion of Access to Information Act (PAIA)

Promotion of Administrative Justice Act (PAJA)

Xhariep District Municipality

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