Supply, installation, testing and commissioning of wheels press brake machines with supporting tooling for TRANSNET wheels business, durban

Integrity Pact obligations (mandatory for all Transnet vendors):

• Sign and comply with the Transnet Supplier Integrity Pact; it forms part of the final contract.
• Zero tolerance for gifts, bribes, kickbacks, or any benefit to Transnet employees; Transnet operates a ‘Zero Gifts’ policy.
• No collusion, price-fixing, market allocation, or bid suppression with competitors; independent bidding required.
• No misrepresentation, false or forged documents, or misuse of Transnet confidential information.
• Disclose agents/representatives in South Africa (foreign bidders) or foreign principals (local bidders).
• Uphold the ten principles of the UN Global Compact: human rights (principles 1–2), labour standards (principles 3–6), environment (principles 7–9), anti-corruption (principle 10).
• Declare no serious legal transgressions in the past 5 years (corruption, fraud, theft, extortion, Competition Act violations) with any public or private entity.
• Must not appear on National Treasury’s Register of Tender Defaulters or List of Restricted Suppliers.
• Disclose any conflict of interest (family, business, or social relationships with Transnet employees or board members) in the RFX declaration form or notify Transnet immediately in writing.
• Must not subcontract any portion of the contract to a restricted company.
• Sanctions for breach: immediate exclusion from bidding process, contract cancellation without compensation, recovery of all sums paid, encashment of advance bank guarantee and performance/warranty bond, cancellation of other contracts, exclusion from future bids with Transnet and other organs of state for up to 10 years (or longer at Transnet’s discretion), penalty up to 10% of contract value for undeclared subcontracting.
• Report corrupt behaviour by Transnet employees via Tip-Off Anonymous hotline: 0800 003 056.

Environmental commitments under UN Global Compact principles (Integrity Pact clause 3.10):

• Principle 7: Support a precautionary approach to environmental challenges.
• Principle 8: Undertake initiatives to promote greater environmental responsibility.
• Principle 9: Encourage development and diffusion of environmentally friendly technologies.

Contractual terms from the Integrity Pact:

• Governing law: Republic of South Africa.
• Validity: indefinite, covering all bidding processes unless cancelled by either party.
• Severability: invalid provisions do not affect the remainder.
• Dispute resolution: parties must use best endeavours to resolve disputes amicably; litigation in bad faith (vexatious proceedings, perjury, scurrilous allegations, abuse of court process) will result in Transnet refusing future business.
• Restriction process: Transnet may restrict a supplier for up to 10 years based on grounds including bad-faith bid withdrawal, failure to sign accepted contract, unsatisfactory performance, bribery, fraud, false local content or B-BBEE statements, false preferential procurement information, causing unrecoverable damage, or bad-faith litigation. Restriction details are submitted to National Treasury for inclusion on the Database of Restricted Suppliers.
• Transnet may terminate existing contracts with a restricted supplier.
• Suppliers may not subcontract to restricted companies.
• Transnet’s Supply Chain Policy and Procurement Procedures Manual are incorporated by reference.

Master agreement between Transnet Engineering (a division of Transnet SOC Ltd) and the supplier for the supply of goods as specified in Schedule 1 (Schedule of Requirements).

The agreement incorporates purchase orders, technical specifications, special conditions, general tender conditions and the supplier's bid documents.

Goods are defined as the materials/products in Schedule 1 (for this tender: wheels press brake machines and supporting tooling).

Each purchase order forms an inseparable part of the agreement.

Amendments to Schedule of Requirements require written agreement; 14 business days for response.

Time is of the essence; delays caused by Transnet extend deadlines equally.

No partnership or agency relationship created.

Transnet legal notices

• Contact: Azwitamisi Mudau
• Role: Executive Manager: Legal Services
• Email: [email protected]
• Address: Cnr Lynette and Koedoespoort, Koedoespoort Road, Pretoria

Transnet commercial notices

• Contact: Mpho Ntjoboko
• Role: Contracts Department
• Email: [email protected]

Supplier notices: placeholders to be completed by the successful bidder

Scope: Supply of goods as defined in Schedule 1 (Schedule of Requirements) — the specific wheels press brake machines and supporting tooling for the Wheels Business in Durban.

Goods must comply with the technical specifications, drawings, and standards referenced in Schedule 1.

Compliance with the National Railway Safety Regulator Act and applicable railway safety requirements is mandatory.

Supplier must maintain quality standards, provide inspection gauges and test equipment calibrated by a Transnet-approved laboratory (certificate not older than 12 months).

Transnet reserves the right to inspect goods at any stage before final acceptance, including at the supplier's premises (7 business days' notice required).

Warranties: goods manufactured to agreed specifications; no third-party IP infringement; disaster recovery arrangements in place.

Risk register to be jointly maintained, updated with mitigation actions.

Monthly contract progress meetings to review late deliverables, costs, performance, corrective actions, risk management; minutes signed off.

Inspection regime: Transnet may inspect goods at any stage; supplier provides calibrated gauges and test equipment (calibration certificate ≤12 months old, Transnet-approved lab); supplier supplies test pieces, samples, labour and apparatus for tests.

7 business days' notice required for inspection readiness.

Transnet may recover inspection costs for rejected goods.

Payment terms: Transnet pays within 30 calendar days after receipt of a valid, undisputed tax invoice and supporting documentation submitted with a month-end statement.

Prices stated inclusive and exclusive of VAT at the applicable ZAR rate.

Late payment interest: Standard Bank of South Africa prime rate from due date until payment.

Price adjustments: subject to review per Schedule 1; negotiations commence at least 2 months before proposed adjustment; supplier must keep auditable cost records.

Benchmarking: if Transnet finds lower total delivered cost from another supplier, supplier has 30 days to match or Transnet may reduce obligations or terminate.

Penalties:

• SLA non-compliance (quality/quantity/specifications, on-time delivery): 1.5% rebate on quarterly sales if 95% service level not met quarterly.
• Subcontracting non-compliance: 100% of undelivered subcontracting value plus 10%.
• Job creation non-compliance: 2% of contract value per job not created.

Non-compliance penalty certificates issued 90 business days before contract expiry; payable within 10 business days of tax invoice; VAT on penalties for supplier's account.

Set-off rights: Transnet may deduct unpaid penalties from supplier's account.

Supplier retains ownership of goods until full payment; risk passes on delivery.

B-BBEE: valid verification certificate must be maintained throughout contract; any decrease in status constitutes breach and may lead to termination; annual status submission by March; B-BBEE data provided within 30 days on request.

Tax compliance: valid tax clearance / SARS tax compliance status PIN required for duration (Income Tax Act, VAT Act, PAYE).

Occupational Health and Safety Act compliance mandatory.

National Railway Safety Regulator Act compliance for railway-related goods.

Environmental legislation compliance and environmental management policy required.

Subcontracting: Transnet approval required; maximum 25% of contract value to enterprises with lower B-BBEE status unless Exempted Micro Enterprise (EME).

Supplier Integrity Pact adherence (anti-corruption, transparency).

No restricted suppliers: bidder must not appear on National Treasury's Register of Tender Defaulters or List of Restricted Suppliers.

CSD registration implied.

Protection of Personal Information Act (POPIA) compliance for personal data processing.

Supplier must comply with the Occupational Health and Safety Act and all applicable labour legislation.

Supplier must comply with the Protection of Personal Information Act (POPIA): process personal information only for agreed purposes; destroy after use subject to legal retention; restrict access to authorised personnel; implement technical and organisational security measures; notify and obtain consent for additional processing; ensure third-party processors bind to same obligations.

Supplier must comply with all applicable environmental legislation and regulations.

Supplier must demonstrate sound environmental performance and maintain an environmental management policy ensuring products are procured, produced, packaged, delivered, used and disposed of in an environmentally appropriate manner.

Supplier must provide Transnet with an understanding of its position on waste disposal, recycling and energy conservation (Green Economy/Carbon Footprint).

Contract duration: one-off period expiring on the last day of the lead-time offered by the bidder; extendable at Transnet's option.

Either party may terminate without cause with 30 calendar days' written notice; existing purchase orders remain valid.

Risk management: risk register to be prepared within 2 weeks of signature; monthly progress meetings.

Transnet obligations: provide reasonable information and facility access for supplier performance.

Supplier obligations: professional conduct; retain records 5 years; maintain all licences/permits; comply with labour laws (OHSA), Supplier Integrity Pact, environmental legislation; renew certifications (including B-BBEE) timely.

Subcontracting: requires Transnet approval; max 25% to lower B-BBEE status enterprises unless EME; supplier remains liable for subcontractor performance.

Payment to subcontractors: Transnet may pay directly at its discretion upon undisputed invoice and supplier confirmation; no contractual relationship created.

B-BBEE obligations: annual status reporting; notification of adverse changes; data provision within 30 days on request.

Penalties: detailed for SLA non-compliance (1.5% quarterly rebate), subcontracting non-compliance (100% + 10%), job creation non-compliance (2% per job); penalty certificates issued 90 business days before expiry; payment within 10 business days of tax invoice; set-off rights.

Invoicing and payment: 30 days after month-end statement with valid tax invoice; interest on late payment at Standard Bank prime rate.

Price adjustments: per Schedule 1; negotiations 2 months prior; cost records auditable; benchmarking clause allows Transnet to demand price match or terminate.

Warranties: goods to specification; no IP infringement; disaster recovery arrangements.

Indemnity: supplier indemnifies Transnet against third-party IP claims.

Inspection: Transnet may inspect at any stage; supplier provides calibrated gauges, test pieces, labour; 7 business days' notice for readiness; cost recovery for rejected goods.

Defective goods / non-conformance / failure to perform: remedies include replacement, repair, price reduction, termination.

Breach and termination: material breach allows termination; force majeure clause; POPIA compliance for personal data; confidentiality obligations; insurance requirements; limitation of liability; IP rights (background/foreground); dispute resolution: negotiation 10 business days then AFSA arbitration in Johannesburg; governing law South Africa; whole agreement; amendment only by written addendum; restricted suppliers database check.