Provision of internal audit services (co-source)

{"closingDate":"28 September 2026","closingTime":"12h00"}

{"name":"Mr. N. Mgxiva on","email":"[email protected]","phone":null,"department":"CONTACT PERSON","address":null}

Returnable Documents: VAT REGISTRATION NUMBER, TAX COMPLIANCE STATUS TCS PIN: OR CSD No, 2. TAX COMPLIANCE REQUIREMENTS, 2.3 APPLICATION FOR THE TAX COMPLIANCE STATUS (TCS) CERTIFICATE OR PIN MAY ALSO BE MADE VIA E -FILING. IN

Bidders must be registered on the Central Supplier Database (CSD) and submit a valid SARS tax compliance PIN. Entity registration documents and certified ID copies of directors (not older than 3 months) are required. All MBD forms (MBD 1, 4, 6.1, 8, 9) must be completed and signed. A billing clearance certificate or municipal account statement confirming no undisputed arrears older than 30 days, plus a signed declaration to that effect, is mandatory. Annual financial statements for the past three years must be provided. In a joint venture, a signed JV agreement with lead partner identified and tax compliance documents for each partner are required. Bidders must achieve a minimum functionality score of 70% based on firm experience (30 points), company profile (5 points), team qualifications and experience (40 points), and audit methodology/plan (25 points). Failure to submit any mandatory document renders the bid non-responsive.

1. Name of the project

Provision of Internal Audit Services (Co-source)

2. Introduction and background

The Winnie Madikizela Mandela Local Municipality (WMMLM) is a Local Sphere of Government Institution listed in Category

A of the Municipal Structures Act No. and was established in December 1998. The WMMLM has established

Internal Audit Unit in terms of s165(1) of the Municipal Finance Management Act (MFMA).

The internal audit function is currently capacitated by Manager: Internal Audit, Senior Internal Auditor, Junior Internal Auditor,

Internal Audit Clerk, Interns. The internal audit function includes interns from time to time, which may be utilized by the service

provider, resulting in integrated project teams, on-the-job training and skills transfer.

The WMMLM is requiring a suitably qualified service provider for the Provision of Internal Audit Services (Co-Source) for

a period of 3 years that can assist the Municipality in achieving its mandate. The Internal Audit function seeks to appoint a

service provider which will enable it to capacitate and have a diverse team to provide assurance, advisory and special services

where Management or the Audit Committee would require it.

4. Internal audit function

The scope of the internal audit function includes assurance services, consulting services, and special services. Some of internal

audit scope includes, amongst others, risk-based audits, follow up audits, ad-hoc audits, compliance audits, performance audits

etc.

The appointed service provider will be requested to assist the in-house Internal Audit unit to render internal audit services for

the municipality in terms of the approved Internal Audit Annual Coverage Plan and the Municipal Finance Management Act,

2003

(Act ).

The scope of internal audit work will entail testing and evaluating the adequacy and effectiveness of the Municipality’s system of

internal control, governance and risk management. This includes the following responsibilities:

• To render internal audit services for the municipality as and when required in terms of the approved Internal Audit
• Annual Coverage Plan and allocation letter by Manager: Internal Audit;
• To perform internal audit assignments in line with the scope and responsibilities as defined per assignment.
• To perform specialized internal audits (i.e. forensic audits) as and when required.

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6. Staffing requirement

WMMLM requires the team provided by the bidder to be in the following composition:

• Engagement Partner/Director
• Audit Manager/ Engagement Supervisory
• Internal Auditors (At least three years of experience in the field, not graduates)

• Compliance Auditor
• Performance Auditor
• Forensic Auditor

• Specialist -Civil Engineer
• Specialist - IT Auditor

7. Envisaged working relationship

The Manager Internal Audit will allocate, as per approved Internal Audit Annual Coverage Plan by both Management and Audit

Committee, facilitate and co-ordinate the projects to be performed by the service providers.

The audit assignments will be completed within the following envisaged structures:

• Projects performed fully by the Service Provider – this is where the service provider will perform an entire assignment

from project planning to issuing the final report.

• Joint Teams – this is where resources from both the Service Provider and the Municipality internal audit are involved

in an assignment.

Timing of assignments will be communicated by the Manager: Internal Audit within at least 1 month before due engagement date.

8. Expected outcomes and deliverables

The successful bidder will be required to review the following amongst others:

• Internal control processes.
• The information systems environment.
• The reliability and integrity of financial and operational information.
• The effectiveness of operations.
• Compliance with policies, regulations and contracts.
• Risk management processes.

The successful bidder is further required to, amongst others:

• Perform risk-based audit assignments as per the Global Internal Audit Standards.
• Perform any ad hoc investigations and audits as requested by Management and the Audit Committee.
• Report through the Internal Audit function the results of the review and the progress against the plan at Audit
• Committee meetings, where progress from internal audit is required.
• Report monthly to the Manager: Internal Audit on progress against the task given.
• Attend Audit Committee meetings when requested, and provide feedback on internal audits completed,
• risk management, and an overview of the control environment.
• Perform internal audits based on the approved WMMLM internal audit methodology and plan or when a specific need

arises based on the request made by the WMMLM.

• To conduct trainings to the Internal Audit team as part of the on-or-off site skills transfer.

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• Perform risk-based audit assignments as per the Global Internal Audit Standards.
• Perform any ad hoc investigations and audits as requested by Management and the Audit Committee.
• Report through the Internal Audit function the results of the review and the progress against the plan at Audit
• Committee meetings, where progress from internal audit is required.
• Report monthly to the Manager: Internal Audit on progress against the task given.
• Attend Audit Committee meetings when requested, and provide feedback on internal audits completed,
• risk management, and an overview of the control environment.
• Perform internal audits based on the approved WMMLM internal audit methodology and plan or when a specific need

arises based on the request made by the WMMLM.

• To conduct trainings to the Internal Audit team as part of the on-or-off site skills transfer.

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(1)

2. 5 years of experience in

building environment and

auditing of infrastructure

projects (1)

3. Membership with ECSA (1)
4. Pr Eng (2)

Detailed Project Implementation Audit Execution (10) 25 25

methodology Methodology and Plan

18.1 In cases where the estimated value of the envisaged changes in purchase does not vary more than 15% of

the total value of the original contract, the contractor may be instructed to deliver thegoods or render the

services as such. In cases of measurable quantities, the contractor may be approached to reduce the unit

price, and such offers may be accepted provided that there is no escalation in price.

• Engagement Partner/Director
• Audit Manager/ Engagement Supervisory
• Internal Auditors (At least three years of experience in the field, not graduates)

• Compliance Auditor
• Performance Auditor
• Forensic Auditor

• Specialist -Civil Engineer
• Specialist - IT Auditor

Firm’s experience in 5 or more valid appointment letters

providing internal audit and signed reference letters

services to 3 – 4 valid appointment letters and

30 municipalities or any signed reference letters

public sector. 1 – 2 valid appointment letter and EXPERIENCE OF A

signed reference letter FIRM

Appointment and 40

reference letters

should be contactable 10

and verifiable

NB: Reference Letter

not more than three

(03) Months Old

Accounting/ Auditing and >5

years ‘experience in auditing

(5); or

2. CA(SA) (5); or

Accounting/ Auditing and > 5

years ‘experience in auditing 5

CV’s with detailed (5); or

experience outline, 2. CA(SA) (5); or

Qualifications, 3. CIA (5); or

Auditing (1)

2. 3 years of experience in

auditing (1)

3. Membership with IIA(SA) (1)
4. Certified Internal Auditor (2)

C2: IT auditor [5]

/Informatics/ Auditing (1)

2. 3 years of experience in IT

auditing (1)

3. Membership with ISACA (1)

Forensic Auditing (1)

2. 3 years of experience in

forensic auditing (1)

3. Membership with ACFE (1)
4. Certified Fraud Examiner (2)

the municipality in terms of the approved Internal Audit Annual Coverage Plan and the Municipal Finance Management Act,

2003

(Act ).

The scope of internal audit work will entail testing and evaluating the adequacy and effectiveness of the Municipality’s system of

internal control, governance and risk management. This includes the following responsibilities:

• To render internal audit services for the municipality as and when required in terms of the approved Internal Audit
• Annual Coverage Plan and allocation letter by Manager: Internal Audit;
• To perform internal audit assignments in line with the scope and responsibilities as defined per assignment.
• To perform specialized internal audits (i.e. forensic audits) as and when required.

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

8.2 If it is a Tender condition that goods to be produced or services to be rendered should at any stage be subject

to inspections, tests and analyses, the bidder or contractor’s premises shall be open, at all reasonable hours,

for inspection by a representative of the purchaser or organization acting on behalf of the purchaser.

8.3 If there are no inspection requirements indicated in the tender documents and no mention is made in the

contract, but during the contract period it is decided that inspections shall be carried out, the purchaser shall

itself make the necessary arrangements, including payment arrangements with the testing authority

concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3 show the goods to be in accordance

with the contract requirements, the cost of the inspections, tests and analyses shall be defrayed by the

purchaser.

8.5 Where the goods or services referred to in clauses 8.2 and 8.3 do not comply with the contract requirements,

irrespective of whether such goods or services are accepted or not, the cost in connection with these

inspections, tests or analyses shall be defrayed by the supplier.

8.6 Goods and services which are referred to in clauses 8.2 and 8.3 and which do not comply withthe contract

requirements may be rejected.

8.7 Any contract goods 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 goods shallbe held at the cost and risk of

the supplier who shall, when called upon, remove them immediately at his own cost and forthwith substitute

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

goods shall be returned at the suppliers cost and risk. Should the supplier fail to provide the substitute goods

forthwith, the purchaser may, without giving the supplier further opportunity to substitute the rejected goods,

purchase such goods as may be necessary at the expense of the supplier.

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

account of a breach of the conditions thereof, or to act in terms of Clause 22 of GCC.

The breakdown of the hourly tariff inclusive of value added tax (VAT) and overheads per year must be provided for the following

required levels of staff:

• Engagement Partner
• Audit Manager/Engagement supervisor
• Civil Engineer
• Auditors (Performance Auditor, IT Auditor, Forensic Auditor, Compliance Auditor)
• Other Specialists (i.e. QS)

ITEM Hourly rates (incl. (OH

& VAT)

Year 1

pertaining thereto as well as Winnie Madikizela Mandela Local Municipality’s Supply Chain Management Policy and

procurement regulation pertaining thereto. Functionality and 80/20 preferential point system will be used as per the SCM policy.

14.2 Evaluation Phases

The evaluation will be completed in 3 phases:

• Phase 1: Compliance to minimum requirements
• Phase 2: Functional evaluation
• Phase 3: Pricing and Preferential Procurement policy (80/20)

PHASE 1: Compliance to minimum requirements

During Phase 1 all bidders will be evaluated to ensure compliance to minimum bid requirements and ensuring all documents

have been completed and that the specified documentation has been submitted in accordance with the bid requirements.

All bidders that comply with the minimum requirements will advance to Phase 2.

6.1 No tender will be considered unless emailed to Winnie Madikizela Mandela Municipality on [email protected].

6.2 Any portion of the tender document not completed will be interpreted as ‘not applicable’. Notwithstanding the

foregoing, failure to complete any compulsory portion of the tender documentmay result in the tender being

declared non-responsive.

6.3 The municipality reserves the right to accept:

6.3.1 the whole tender or part of a tender or any item or part of any item, or to accept more than one tender (in the

event of a number of items being offered), and municipality is not obliged to acceptthe lowest or any tender;

6.3.2 a tender which is not substantially or materially different from the tender Specification.

6.4 The municipality shall not consider tenders that are received after the closing date and time for such a

tender.

6.5 The municipality will not be held responsible for any expenses incurred by Tenderers in preparing and

submitting tenders.

6.6 The municipality may, after the closing date, request additional information or clarification of tenders in

writing.

6.7 A Tenderer may request in writing, after the closing date, that the tender offer be withdrawn. Suchwithdrawal

will be permitted or refused at the sole discretion of the municipality after consideration of the reasons for the

withdrawal.

6.8 The municipality reserves the right to adjust arithmetical errors in the extension of rates and totals in the quote,

and the bidder will be informed of the effect of any corrections on his quotation sum prior to the award of the

contract. In no case will quoted rates be adjusted when correcting such errors.

6.9 Telegraphic quotations or quotations by facsimile will not be accepted for consideration except for the instance

as indicated above where the employer needs to have amendments to the quotation.

6.10 Resolutions and Authorities

32.4 No contract shall be concluded with any bidder whose municipal rates and taxes and municipalservices

charges are in arrears.

[email protected] for tenders above R300 000 inclusive of VAT OR [email protected] for quotations below R300 000 but above R30 000 inclusive of VAT 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: PEOPLE LIVING WITH DISABILITY Yes MILITARY Yes [TICK APPLICABLE BOX] VETERAN No No [DOCUMENTARY PROOF/ SWORN AFFIDAVIT (FOR PEOPLE LIVING WITH DISABILITIES) MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR TARGETED GOALS] ARE YOU A ARE YOU THE ACCREDITED FOREIGN BASED REPRESENTATIVE IN SOUTH SUPPLIER FOR THE Yes No Yes No AFRICA FOR THE GOODS GOODS /SERVICES /SERVICES /WORKS OFFERED? [IF YES ENCLOSE PROOF] /WORKS OFFERED? [IF YES, ANSWER PART B:3] TOTAL NUMBER OF ITEMS OFFERED TOTAL BID PRICE R SIGNATURE OF BIDDER .................................... DATE CAPACITY UNDER WHICH THIS BID IS SIGNED BIDDING PROCEDURE ENQUIRIES MAY BE DIRECTED TO: TECHNICAL INFORMATION MAY BE DIRECTED TO: DEPARTMENT CONTACT PERSON CONTACT PERSON TELEPHONE NUMBER TELEPHONE NUMBER FACSIMILE NUMBER FACSIMILE NUMBER E-MAIL ADDRESS E-MAIL ADDRESS 4 | P a g e TERMS AND CONDITIONS FOR BIDDING

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–(not to be re-typed) or online 1.3. This bid is subject to the preferential procurement policy framework act and the preferential procurement regulations, 2017, the general conditions of contract (gcc) and, if applicable, any other special conditions of contract.

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. In order 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.

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 OF 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: ................................................... 5 | P a g e

B-BBEE Details: ment issued by the municipality

• A copy of Entity Registration Documents, Certified ID Copy(ies) of Director(s) (not older than 3 months), proof of CSD Registration
• SARS Valid PIN Printout
• Bid documents MBD1, MBD4, MBD6.1, MBD 8 and MDB 9
• Billing Clearance Certificate or Statement of Municipal Accounts confirming that no undisputed municipal accounts are overdue by more
• than 30 days and a signed letter by the bidder confirming that the entity does not have outstanding accounts more than 30 Days on the day of

the tender closing.

• Evaluation Criteria: 80 or 90= Price, 20 or 10= Specific Goals as per the attached MBD 6.1 respectively
• In case of a joint venture, an original valid Tax Compliance Document of all partners should be submitted as well as a signed agreement
• by both parties clearly indicating the lead partner
• The Minimum Threshold for Local Content for the above-mentioned projects is 100%
• Annual Financial Statements for the past three (3) Years

Advert Date: 28/08/2026

Publication: Local/Provincial Newspaper, Municipal Website, e-tender portal.

Closing Date: All tenders must be emailed to [email protected] by no later than the date and time stated above after which they

will be opened.

The municipality will only consider bids submitted on the original bid documentation provided by the municipality. All tenders must be clearly

marked the Name of the project and Reference number indicated above. Failure to do so your tender may not be considered. Any unauthorized

alterations in BOQ/Quotation to the tender document shall render the submission invalid. Note: If a bidder’s taxable turnover exceeds R2.3 million on

taxable supplies,the bidder is expected to be VAT registered. If they are not VAT registered despite exceeding that t

and I/we am /are not aware of any information which, should it become known to the Winnie Madikizela-Mandela Local Municipality, would

affect the consideration of my/our Bid in any way. The Winnie Madikizela-Mandela Local Municipality wishes to inform you that all

information regarding your personal matters is treated as strictly confidential.

The Winnie Madikizela Mandela Local Municipality (WMMLM) is a Local Sphere of Government Institution listed in Category

A of the Municipal Structures Act No. and was established in December 1998. The WMMLM has established

Internal Audit Unit in terms of s165(1) of the Municipal Finance Management Act (MFMA).

The internal audit function is currently capacitated by Manager: Internal Audit, Senior Internal Auditor, Junior Internal Auditor,

agreement must be submitted with the tender document.

6.12 Validity Period

6.12.1 Any tender submitted shall remain valid, irrevocable and open for written acceptance by the municipality for

a period of 90 days from the closing date or for such extended period as may beapplicable.

6.12.2 The tender amount will not be amended during the aforesaid validity period.

6.12.3 The aforesaid validity period may be extended by the municipality provided that the original validity

period has not expired, and that all bidders are given an opportunity to extend such period. Any such

extension shall be agreed to by a bidder in writing.

6.12.4 Bidders who fail to respond to such a request before the validity of their tender expires, or who decline such

a request shall not be considered further in the evaluation process.

6.12.5 In the event that an appeal in terms of the Systems Act , is received, the validity periodof the tender

shall be deemed to be extended until finalisation of the appeal; unless the bidder has requested in writing that

its tender be withdrawn. The provisions in respect of withdrawal as set out in clause 6.8 above will apply to

such withdrawal.

6.13 Unauthorized alterations and additions in the nature of statement of interpretation of this bid document

must be avoided. If any such amendments are made or if the bid document is not properly completed,

it will cause the bid to be invalid. Any point of difficulty or doubt must becleared with the municipality.

3.1 Unless otherwise indicated in the tender documents, the purchaser shall not be liable for any expense incurred

in the preparation and submission of a Tender. Where

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applicable a non-refundable fee for documents may be charged.

3.2 Invitations to Tender are usually published in locally distributed news media and on the Winnie Madikizela

5.1 The supplier shall not, without the purchaser’s prior written consent, disclose the contract, or any provision

thereof, or any specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the

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

performance of the contract. Disclosure to any such employed person shall be made in confidence and shall

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

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

mentioned in GCC clause 5.1 except for purposes of performing the contract.

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

purchaser and shall be returned (all copies) to the purchaser on completion of the supplier’s performance

under the contract if so required by the purchaser.

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

supplier and to have them audited by auditors appointed by the purchaser, if so required by the purchaser.

24.1 When, after the date of Tender, provisional payments are required, or anti-dumping or countervailing duties

are imposed, or the amount of a provisional payment or antidumping or countervailing right is increased in

respect of any dumped or subsidized import, the State is not liable for any amount so required or imposed, or

for the amount of any such increase. When, after the said date, such a provisional payment is no longer

required or any such anti-dumping or countervailing right is abolished, or where the amount of such provisional

payment or any such right is reduced, any such favorable difference shall on demand be paid forthwith by the

supplier to the purchaser or the purchaser may deduct such amounts from moneys (if any) which may

otherwise be due to the supplier in regard to goods or services which he delivered or rendered, or is to deliver

or render in terms of the contract or any other contract or any other amount which may be due to him.

31.1 Every written acceptance of a Tender shall be posted to the supplier concerned by registered or certified

mail and any other notice to him shall be posted by ordinary mail to the address furnished in his Tender or

to the address notified later by him in writing and such posting shall bedeemed to be proper service of such

notice

31.2 The time mentioned in the contract documents for performing any act after such aforesaid noticehas been

given, shall be reckoned from the date of posting of such notice.

tasks, timelines, risk management

associated with this project and

mitigation strategy (5)

Total 100

NB: WMMLM reserves the right to verify the validity of the document submitted

Bidders scoring less than 70% in Phase 2 will not be eligible for Phase 3 evaluation i.e. price and preferential procurement.

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16. Payment
17. Prices
18. Variation orders
19. Assignment
20. Subcontracts
21. Delays in the supplier’s performance
22. Penalties
23. Termination for default
24. Anti-dumping and countervailing duties and rights
25. Force Majeure
26. Termination for insolvency
27. Settlement of Disputes
28. Limitation of Liability
29. Governing language
30. Applicable law
31. Notices
32. Taxes and duties
33. Transfer of contracts
34. Amendments of contracts
35. Prohibition of restricted practices

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General Conditions of Contract

1. Definitions

2. The following terms shall be interpreted as indicated:

1.1 “Closing time” means the date and hour specified in the tender documents for the receiptof Tenders.

1.2 “Contract” means the written agreement entered into between the purchaser and the supplier, as

recorded in the contract form signed by the parties, including all attachmentsand appendices thereto

and all documents incorporated by reference therein.

1.3 “Contract price” means the price payable to the supplier under the contract for the full and proper

performance of his contractual obligations.

1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of valueto 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 recognizednew product results that

is substantially different in basic characteristics or in purpose or utility from its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and unloaded in the specified store

or depot or on the specified site in compliance with the conditions of the contract or order, the

supplier bearing all risks and charges involved until the goods areso delivered and a valid receipt

is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods on own initiative inthe RSA at

lower prices than that of the country of origin and which have the potential to harm the local

industries in the RSA.

1.12 ” Force majeure” means an event beyond the control of the supplier and not involving thesupplier’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 Tender submission) designed to establish Tender prices at artificial

non-competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

1.15 “Goods” means all of the equipment, machinery, and/or other materials that the supplier

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is required to supply to the purchaser under the contract.

1.16 “Imported content” means that portion of the tender price represented by the cost of components,

parts or materials which have been or are still to be imported (whether by the supplier or his

subcontractors) and which costs are inclusive of the costs abroad, plus freight and other direct

importation costs such as landing costs, dock dues, import duty, sales duty or other similar tax or

duty at the South African place of entry as well as transportation and handling charges to the factory

in the Republic where the goods covered by the Tender will be manufactured.

1.17 “Local content” means that portion of the tender price, which is not included in theimported

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 therendering

of a service.

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

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means 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 andother such obligations

of the supplier covered under the contract.

1.25 “Supplier” means the successful bidder who is awarded the contract to maintain andadminister

the required and specified service(s) to the State.

1.26 “Tort” means in breach of contract.

1.27 “Turnkey” means a procurement process where one service provider assumes total

responsibility for all aspects of the project and delivers the full end product / service required

by the contract.

1.28 “Written” or “in writing” means hand-written in ink or any form of electronic or mechanicalwriting.

2. Application

2.1 These general conditions are applicable to all Tenders, contracts and orders including Tenders for functional

and professional services (excluding professional services related to the building and construction industry),

sales, hiring, letting and the granting or acquiring of rights, but excluding immovable property, unless otherwise

indicated in the tender documents.

2.2 Where applicable, special conditions of contract are also laid down to cover specific goods, services or works.

2.3 Where such special conditions of contract are in conflict with these general conditions, the special conditions

shall apply.

3. General

3.1 Unless otherwise indicated in the tender documents, the purchaser shall not be liable for any expense incurred

in the preparation and submission of a Tender. Where

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applicable a non-refundable fee for documents may be charged.

3.2 Invitations to Tender are usually published in locally distributed news media and on the Winnie Madikizela

Mandela Municipality website.

4. Standards

4.1 The goods supplied shall conform to the standards mentioned in the tender documents and specifications.

5. Use of contract documents and information inspection

5.1 The supplier shall not, without the purchaser’s prior written consent, disclose the contract, or any provision

thereof, or any specification, plan, drawing, pattern, sample, or information furnished by or on behalf of the

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

performance of the contract. Disclosure to any such employed person shall be made in confidence and shall

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

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

mentioned in GCC clause 5.1 except for purposes of performing the contract.

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

purchaser and shall be returned (all copies) to the purchaser on completion of the supplier’s performance

under the contract if so required by the purchaser.

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

supplier and to have them audited by auditors appointed by the purchaser, if so required by the purchaser.

6. Patent Rights

6.1 The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark,

or industrial design rights arising from use of the goods or any part thereof by the purchaser.

6.2 When a supplier developed documentation / projects for the Winnie Madikizela Mandela Municipality, the

intellectual, copy and patent rights or ownership of such documents or projects will vest in the Winnie

Madikizela Mandela Municipality.

7. Performance security

7.1 Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the

purchaser the performance security of the amount specified in SCC.

7.2 The proceeds of the performance security shall be payable to the purchaser as compensation for any loss

resulting from the supplier’s failure to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the contract or in a freely

convertible currency acceptable to the purchaser and shall be in one of the following forms:

(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 tenderdocuments or another

form acceptable to the purchaser; or

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(b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later than thirty

(30) days following the date of completion of the supplier’s performance obligations under the contract,

including any warranty obligations, unless otherwise specified.

8. Inspections, tests and analyses

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

8.2 If it is a Tender condition that goods to be produced or services to be rendered should at any stage be subject

to inspections, tests and analyses, the bidder or contractor’s premises shall be open, at all reasonable hours,

for inspection by a representative of the purchaser or organization acting on behalf of the purchaser.

8.3 If there are no inspection requirements indicated in the tender documents and no mention is made in the

contract, but during the contract period it is decided that inspections shall be carried out, the purchaser shall

itself make the necessary arrangements, including payment arrangements with the testing authority

concerned.

8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3 show the goods to be in accordance

with the contract requirements, the cost of the inspections, tests and analyses shall be defrayed by the

purchaser.

8.5 Where the goods or services referred to in clauses 8.2 and 8.3 do not comply with the contract requirements,

irrespective of whether such goods or services are accepted or not, the cost in connection with these

inspections, tests or analyses shall be defrayed by the supplier.

8.6 Goods and services which are referred to in clauses 8.2 and 8.3 and which do not comply withthe contract

requirements may be rejected.

8.7 Any contract goods 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 goods shallbe held at the cost and risk of

the supplier who shall, when called upon, remove them immediately at his own cost and forthwith substitute

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

goods shall be returned at the suppliers cost and risk. Should the supplier fail to provide the substitute goods

forthwith, the purchaser may, without giving the supplier further opportunity to substitute the rejected goods,

purchase such goods as may be necessary at the expense of the supplier.

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

account of a breach of the conditions thereof, or to act in terms of Clause 22 of GCC.

9. Packing

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

during transit to their final destination, as indicated in the contract. The packing shall be sufficient to withstand,

without limitation, rough handling during transit and exposure to extreme temperatures, salt and precipitation

during transit, and open storage. Packing, case size and weights shall take into consideration, where

appropriate, the remoteness of the goods’ final destination and the absence of heavy handling facilities at all

points in transit.

9.2 The packing, marking, and documentation within and outside the packages shall comply strictly with such

special requirements as shall be expressly provided for in the contract, including additional requirements, if

any, and in any subsequent instructionsordered by the purchaser.

10. Delivery and documents

10.1 Delivery of the goods and arrangements for shipping and clearance obligations shall be made by the supplier

in accordance with the terms specified in the contract.

11. Insurance

11.1 The goods supplied under the contract shall be fully insured in a freely convertible currency against loss or

damage incidental to manufacture or acquisition, transportation, storage and delivery in the manner specified.

12. Transportation

12.1 Should a price other than an all-inclusive delivered price be required, this shall be specified.

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13. Incidental Services

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

any:

(a) performance or supervision of on-site assembly and/or commissioning of the suppliedgoods;

(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 of time agreed by the parties, provided that this service shall not relieve thesupplier of

any warranty obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly,start-up,

operation, maintenance, and/or repair of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall

be agreed upon in advance by the parties and shall not exceed the prevailing rates charged to other parties

by the supplier for similar services.

14. Spare parts

14.1.1 As specified, the supplier may be required to provide any or all of the following materials, notifications, and

information pertaining to spare parts manufactured or distributed by the supplier:

a) such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall

not relieve the supplier of any warranty obligations under the contract; and

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.

15.1 The supplier warrants that the goods supplied under the contract are new, unused, of the most recent or

current models, and that they incorporate all recent improvements in design and materials unless provided

otherwise in the contract. The supplier further warrants that all goods supplied under this contract shall have

no defect, arising from design, materials, or workmanship (except when the design and/or material is required

by the purchaser’s specifications) or from any act or omission of the supplier, that may develop under normal

use of the supplied goods in the conditions prevailing in the country of final destination.

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

may be, have been delivered to and accepted at the final destination indicated in the contract, or for eighteen

(18) months after the date of shipment from the port or place of loadingin the source country, whichever

period concludes earlier, unless specified otherwise.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified and with all reasonable speed, repair

or replace the defective goods or parts thereof, without costs to the purchaser.

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

may proceed to take such remedial action as may be necessary, at the supplier’s risk and expense and without

prejudice to any other rights which the purchaser may have against the supplier under the contract.

16. Payment

16.1 The method and conditions of payment to be made to the supplier under this contract shall be specified.

16.2 The supplier shall furnish the purchaser with an invoice accompanied by a copy of the delivery note and upon

fulfilment of other obligations stipulated in the contract.

16.3 Payments shall be made promptly by the purchaser, but in no case later than thirty

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(30) days after submission of an invoice or claim by the supplier.

16.4 Payment will be made in Rand unless otherwise stipulated.

17. Prices

17.1 Prices charged by the supplier for goods delivered and services performed under the contract shall not vary

from the prices quoted by the supplier in his Tender, with the exception of any price adjustments authorized or

in the purchaser’s request for Tender validity extension, as the case may be.

18. Variation orders

18.1 In cases where the estimated value of the envisaged changes in purchase does not vary more than 15% of

the total value of the original contract, the contractor may be instructed to deliver thegoods or render the

services as such. In cases of measurable quantities, the contractor may be approached to reduce the unit

price, and such offers may be accepted provided that there is no escalation in price.

19. Assignment

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

the purchaser’s prior written consent.

20. Subcontracts

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under these contracts if not

already specified in the Tender. Such notification, in the original Tender or later, shall not relieve the supplier

from any liability or obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordancewith the

time schedule prescribed by the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter

conditions impeding timely delivery of the goods and performance of services, the supplier shall promptly

notify the purchaser in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable

after receipt of the supplier’s notice, the purchaser shall evaluate the situation and may at his discretion extend

the supplier’s time for performance, with orwithout the imposition of penalties, in which case the extension

shall be ratified by the parties by amendment of contract.

21.3 The right is reserved to procure outside of the contract small quantities or to have minor essential services

executed if an emergency arises, the supplier’s point of supply is not situated at or near the place where the

goods are required, or the supplier’s services are not readily available.

21.4 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations

shall render the supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension

of time is agreed upon pursuant to GCC Clause 22.2 without the application of penalties.

21.5 Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall, without

cancelling the contract, be entitled to purchase goods of a similar quality and up to the same quantity in

substitution of the goods not supplied in conformity with the contract and toreturn any goods delivered

later at the supplier’s expense and risk, or to cancel the contract and buy such goods as may be required to

complete the contract and without prejudice to his other rights, be entitled to claim damages from the supplier.

22. Penalties

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services

within the period(s) specified in the contract, the purchaser shall, without prejudice to its other remedies under

the contract, deduct from the contract price, as a penalty, a sum calculatedon the delivered price of the

delayed goods or unperformed services using the current prime interest rate calculated for each day of the

delay until actual delivery or performance. The purchaser may also consider termination of the contract

pursuant to GCC Clause 23.

23. Termination for default

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent

to the supplier, may terminate this contract in whole or in part:

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(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract,or within

any extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

(b) if the supplier fails to perform any other obligation(s) under the contract; or

(c) if the supplier, in the judgement of the purchaser, has engaged in corrupt or fraudulent practicesin competing

for or in executing the contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure,upon such

terms and in such manner, as it deems appropriate, goods, works or services similar to those undelivered,

and the supplier shall be liable to the purchaser for any excess costs for such similar goods, works or services.

However, the supplier shall continue performance of the contract to the extent not terminated.

24. Antidumping and countervailing duties and rights

24.1 When, after the date of Tender, provisional payments are required, or anti-dumping or countervailing duties

are imposed, or the amount of a provisional payment or antidumping or countervailing right is increased in

respect of any dumped or subsidized import, the State is not liable for any amount so required or imposed, or

for the amount of any such increase. When, after the said date, such a provisional payment is no longer

required or any such anti-dumping or countervailing right is abolished, or where the amount of such provisional

payment or any such right is reduced, any such favorable difference shall on demand be paid forthwith by the

supplier to the purchaser or the purchaser may deduct such amounts from moneys (if any) which may

otherwise be due to the supplier in regard to goods or services which he delivered or rendered, or is to deliver

or render in terms of the contract or any other contract or any other amount which may be due to him.

25. Force Majeure

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liablefor forfeiture

of its performance security, damages, or termination for default if and to the extent that his delay in

performance or other failure to perform his obligations under the contract is the result of an event of

force majeure.

25.2 If a force majeure situation arises, the supplier shall promptly notify the purchaser in writing of such

condition and the cause thereof. Unless otherwise directed by the purchaser in writing, the supplier

shall continue to perform its obligations under the contract as far as is reasonably practical, and shall

seek all reasonable alternative meansfor performance not prevented by the force majeure event.

26. Termination for insolvency

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

becomes bankrupt or otherwise insolvent. In this event, termination will be without compensation to the

supplier, provided that such termination will not prejudice or affect any right of action or remedy, which has

accrued or will accrue thereafter to the purchaser.

27. Settlement of Disputes

27.1 If any dispute or difference of any kind whatsoever arises between the purchaser and the supplierin connection

with or arising out of the contract, the parties shall make every effort to resolve amicably such dispute or

difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual

consultation, then either the purchaser or the supplier may give notice to the other party of his intention to

commence with mediation. No mediation in respect of this matter may be commenced unless such notice is

given to the other party.

28. Limitation of Liability

28.1 Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court

of law.

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

(a) the parties shall continue to perform their respective obligations under the contract unless they

otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier for goods delivered and

/ or services rendered according to the prescripts of the contract.

28.3 except in cases of criminal negligence or wilful misconduct, and in the case of infringement pursuant

to Clause 6;

a) the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or

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consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided

that this exclusion shall not apply to any obligation of the supplier to paypenalties and/or damages to the

purchaser; and

b) the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or otherwise, shall

not exceed the total contract price, provided that this limitation shall not apply tothe cost of repairing or

replacing defective equipment.

29. Governing language

29.1 The contract shall be written in English. All correspondence and other documents pertaining to the contract

that is exchanged by the parties shall also be written in English.

30. Applicable law

30.1 The contract shall be interpreted in accordance with South African laws, unless otherwisespecified.

31. Notices

31.1 Every written acceptance of a Tender shall be posted to the supplier concerned by registered or certified

mail and any other notice to him shall be posted by ordinary mail to the address furnished in his Tender or

to the address notified later by him in writing and such posting shall bedeemed to be proper service of such

notice

31.2 The time mentioned in the contract documents for performing any act after such aforesaid noticehas been

given, shall be reckoned from the date of posting of such notice.

32. Taxes and duties

32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties, license fees, and othersuch levies

imposed outside the purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license fees, etc., incurred untildelivery 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

Tender SARS must have certified that the tax matters of the preferred bidder are in order.

32.4 No contract shall be concluded with any bidder whose municipal rates and taxes and municipalservices

charges are in arrears.

33. Transfer of contracts

33.1 The contractor shall not abandon, transfer, cede assign or sublet a contract or part thereofwithout 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 restricted 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 firms, isprohibited if it is between parties

in a horizontal relationship and if a bidder (s) is / are or a contractor(s) was / were involved in collusive

bidding.

35.2 If a bidder(s) or contractor(s), based on reasonable grounds or evidence obtained by the purchaser, has

/ have engaged in the restrictive practice referred to above, the purchaser mayrefer the matter to the

Competition Commission for investigation and possible imposition of administrative penalties as

contemplated in section 59 of 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.

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Mbd 4

Declaration of interest

1. No bid will be accepted from persons in the service of the state1.

2. Any person, having a kinship with persons in the service of the state, including a blood

relationship, may make an offer or offers in terms of this invitation to bid. In view of possible

allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons

connected with or related to persons in service of the state, it is required that the bidder or their

authorised representative declare their position in relation to the evaluating/adjudicating

authority.

3 In order to give effect to the above, the following questionnaire must be completed and

submitted with the bid.

3.1 Full Name of bidder or his or her representative:.....................................................

3.2 Identity Number: ..............................................................................................

3.3 Position occupied in the Company (director, trustee, hareholder2):.............................

3.4 Company Registration Number: .........................................................................

3.5 Tax Reference Number:....................................................................................

3.6 VAT Registration Number: ..............................................................................

3.7 The names of all directors / trustees / shareholders members, their

individual identity numbers and state employee numbers must be indicated in

paragraph 4 below.

3.8 Are you presently in the service of the state? YES / NO

3.8.1 If yes, furnish particulars. .........................................................................

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

1MSCM Regulations: “in the service of the state” means to be –

(a) a member of –

(i) any municipal council;

(ii) any provincial legislature; or

(iii) the national Assembly or the national Council of provinces;

(b) a member of the board of directors of any municipal entity;

(c) an official of any municipality or municipal entity;

(d) an employee of any national or provincial department, national or provincial public entity or

constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act

No.);

(e) a member of the accounting authority of any national or provincial public entity; or

(f) an employee of Parliament or a provincial legislature.

2 Shareholder” means a person who owns shares in the company and is actively involved in the

management of the company or business and exercises control over the company.

3.9 Have you been in the service of the state for the past twelve months? .........YES / NO

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3.9.1 If yes, furnish particulars...........................................................................

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

3.10 Do you have any relationship (family, friend, other) with persons in

the service of the state and who may be involved with

the evaluation and or adjudication of this bid? .................................................. YES / NO

3.10.1 If yes, furnish particulars.

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

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

3.11 Are you, aware of any relationship (family, friend, other) between

any other bidder and any persons in the service of the state who

may be involved with the evaluation and or adjudication of this bid? YES / NO

3.11.1 If yes, furnish particulars

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

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

3.12 Are any of the company’s directors, trustees, managers,

principle shareholders or stakeholders in service of the state? YES / NO

3.12.1 If yes, furnish particulars.

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

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

3.13 Are any spouse, child or parent of the company’s directors

trustees, managers, principle shareholders or stakeholders

in service of the state? YES / NO

3.13.1 If yes, furnish particulars.

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

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

3.14 Do you or any of the directors, trustees, managers,

principle shareholders, or stakeholders of this company

have any interest in any other related companies or

business whether or not they are bidding for this contract. YES / NO

3.14.1 If yes, furnish particulars:

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

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

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4. Full details of directors / trustees / members / shareholders.

Full Name Identity Number State Employee

Number

Certification

I, the undersigned (full names)

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

..

Certify that the information furnished on this declaration form is

Correct.

I accept that the municipality may act against me should this

Declaration prove to be false.

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

Signature Date

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

Capacity Name of Bidder

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Bids should score a minimum point of 70% on the functionality evaluation in order to be considered for further evaluation.

The bids will be evaluated on the 80/20 or 90/10 preferential points system

Failure to submit the following document(s) completed in full will render the bid not responsive:

• A completed original document issued by the municipality
• A copy of Entity Registration Documents, Certified ID Copy(ies) of Director(s) (not older than 3 months), proof of CSD Registration
• SARS Valid PIN Printout
• Bid documents MBD1, MBD4, MBD6.1, MBD 8 and MDB 9
• Billing Clearance Certificate or Statement of Municipal Accounts confirming that no undisputed municipal accounts are overdue by more
• than 30 days and a signed letter by the bidder confirming that the entity does not have outstanding accounts more than 30 Days on the day of

the tender closing.

• Evaluation Criteria: 80 or 90= Price, 20 or 10= Specific Goals as per the attached MBD 6.1 respectively
• In case of a joint venture, an original valid Tax Compliance Document of all partners should be submitted as well as a signed agreement
• by both parties clearly indicating the lead partner
• The Minimum Threshold for Local Content for the above-mentioned projects is 100%
• Annual Financial Statements for the past three (3) Years

Advert Date: 28/08/2026

Publication: Local/Provincial Newspaper, Municipal Website, e-tender portal.

Closing Date: All tenders must be emailed to [email protected] by no later than the date and time stated above after which they

will be opened.

• Internal control processes.
• The information systems environment.
• The reliability and integrity of financial and operational information.
• The effectiveness of operations.
• Compliance with policies, regulations and contracts.
• Risk management processes.

(minimum requirements)

a) Bid offers must be properly received on the tender closing date and time specified on the invitation, fully completed and

signed in ink as per Standard Conditions of Tender;

b) Printout of Central Supplier Database;

c) A copy of Entity Registration Documents, Certified ID Copies of Director(s) (not older than 3 months);

d) SARS Valid PIN Printout;

e) Required Municipal Bidding Documents (MBD) as specified on the invitation;

f) Billing Clearance Certificate or Statement of Municipal Accounts or Lease Agreement (rented property), confirming

g) that no undisputed municipal accounts are overdue by more than 30 days;

h) Letter signed by the bidder declaring that all accounts have been disclosed and no account is more than 30 Days in

arrears;

i) In case of a joint venture, an original valid Tax Compliance Document of both partners should be submitted as well as a

signed agreement by both parties clearly indicating the lead partner.

PHASE 2: Functional evaluation

All bidders that advance to Phase 2 will be evaluated by bid committees to determine compliance to the functional requirements

of the bid. The functional evaluation will be rated out of 100 points and will be determined as follows: only bidders who score

a minimum of 70% will be evaluated further.

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1.1 “Closing time” means the date and hour specified in the tender documents for the receiptof Tenders.

1.2 “Contract” means the written agreement entered into between the purchaser and the supplier, as

recorded in the contract form signed by the parties, including all attachmentsand appendices thereto

and all documents incorporated by reference therein.

1.3 “Contract price” means the price payable to the supplier under the contract for the full and proper

performance of his contractual obligations.

1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting of anything of valueto 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 recognizednew product results that

is substantially different in basic characteristics or in purpose or utility from its components.

1.7 “Day” means calendar day.

1.8 “Delivery” means delivery in compliance of the conditions of the contract or order.

1.9 “Delivery ex stock” means immediate delivery directly from stock actually on hand.

1.10 “Delivery into consignees store or to his site” means delivered and unloaded in the specified store

or depot or on the specified site in compliance with the conditions of the contract or order, the

supplier bearing all risks and charges involved until the goods areso delivered and a valid receipt

is obtained.

1.11 "Dumping" occurs when a private enterprise abroad market its goods on own initiative inthe RSA at

lower prices than that of the country of origin and which have the potential to harm the local

industries in the RSA.

1.12 ” Force majeure” means an event beyond the control of the supplier and not involving thesupplier’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 Tender submission) designed to establish Tender prices at artificial

non-competitive levels and to deprive the bidder of the benefits of free and open competition.

1.14 “GCC” means the General Conditions of Contract.

1.15 “Goods” means all of the equipment, machinery, and/or other materials that the supplier

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is required to supply to the purchaser under the contract.

1.16 “Imported content” means that portion of the tender price represented by the cost of components,

parts or materials which have been or are still to be imported (whether by the supplier or his

subcontractors) and which costs are inclusive of the costs abroad, plus freight and other direct

importation costs such as landing costs, dock dues, import duty, sales duty or other similar tax or

duty at the South African place of entry as well as transportation and handling charges to the factory

in the Republic where the goods covered by the Tender will be manufactured.

1.17 “Local content” means that portion of the tender price, which is not included in theimported

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 therendering

of a service.

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

1.21 “Purchaser” means the organization purchasing the goods.

1.22 “Republic” means the Republic of South Africa.

1.23 “SCC” means the Special Conditions of Contract.

1.24 “Services” means 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 andother such obligations

of the supplier covered under the contract.

1.25 “Supplier” means the successful bidder who is awarded the contract to maintain andadminister

the required and specified service(s) to the State.

1.26 “Tort” means in breach of contract.

1.27 “Turnkey” means a procurement process where one service provider assumes total

responsibility for all aspects of the project and delivers the full end product / service required

by the contract.

1.28 “Written” or “in writing” means hand-written in ink or any form of electronic or mechanicalwriting.

6.1 The supplier shall indemnify the purchaser against all third-party claims of infringement of patent, trademark,

or industrial design rights arising from use of the goods or any part thereof by the purchaser.

6.2 When a supplier developed documentation / projects for the Winnie Madikizela Mandela Municipality, the

intellectual, copy and patent rights or ownership of such documents or projects will vest in the Winnie

7.1 Within thirty (30) days of receipt of the notification of contract award, the successful bidder shall furnish to the

purchaser the performance security of the amount specified in SCC.

7.2 The proceeds of the performance security shall be payable to the purchaser as compensation for any loss

resulting from the supplier’s failure to complete his obligations under the contract.

7.3 The performance security shall be denominated in the currency of the contract or in a freely

convertible currency acceptable to the purchaser and shall be in one of the following forms:

(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 tenderdocuments or another

form acceptable to the purchaser; or

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(b) a cashier’s or certified cheque

7.4 The performance security will be discharged by the purchaser and returned to the supplier not later than thirty

(30) days following the date of completion of the supplier’s performance obligations under the contract,

including any warranty obligations, unless otherwise specified.

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

any:

(a) performance or supervision of on-site assembly and/or commissioning of the suppliedgoods;

(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 of time agreed by the parties, provided that this service shall not relieve thesupplier of

any warranty obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or on-site, in assembly,start-up,

operation, maintenance, and/or repair of the supplied goods.

13.2 Prices charged by the supplier for incidental services, if not included in the contract price for the goods, shall

be agreed upon in advance by the parties and shall not exceed the prevailing rates charged to other parties

by the supplier for similar services.

14.1.1 As specified, the supplier may be required to provide any or all of the following materials, notifications, and

information pertaining to spare parts manufactured or distributed by the supplier:

a) such spare parts as the purchaser may elect to purchase from the supplier, provided that this election shall

not relieve the supplier of any warranty obligations under the contract; and

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 supplier warrants that the goods supplied under the contract are new, unused, of the most recent or

current models, and that they incorporate all recent improvements in design and materials unless provided

otherwise in the contract. The supplier further warrants that all goods supplied under this contract shall have

no defect, arising from design, materials, or workmanship (except when the design and/or material is required

by the purchaser’s specifications) or from any act or omission of the supplier, that may develop under normal

use of the supplied goods in the conditions prevailing in the country of final destination.

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

may be, have been delivered to and accepted at the final destination indicated in the contract, or for eighteen

(18) months after the date of shipment from the port or place of loadingin the source country, whichever

period concludes earlier, unless specified otherwise.

15.3 The purchaser shall promptly notify the supplier in writing of any claims arising under this warranty.

15.4 Upon receipt of such notice, the supplier shall, within the period specified and with all reasonable speed, repair

or replace the defective goods or parts thereof, without costs to the purchaser.

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

may proceed to take such remedial action as may be necessary, at the supplier’s risk and expense and without

prejudice to any other rights which the purchaser may have against the supplier under the contract.

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded under these contracts if not

already specified in the Tender. Such notification, in the original Tender or later, shall not relieve the supplier

from any liability or obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the supplier in accordancewith the

time schedule prescribed by the purchaser in the contract.

21.2 If at any time during performance of the contract, the supplier or its subcontractor(s) should encounter

conditions impeding timely delivery of the goods and performance of services, the supplier shall promptly

notify the purchaser in writing of the fact of the delay, it’s likely duration and its cause(s). As soon as practicable

after receipt of the supplier’s notice, the purchaser shall evaluate the situation and may at his discretion extend

the supplier’s time for performance, with orwithout the imposition of penalties, in which case the extension

shall be ratified by the parties by amendment of contract.

21.3 The right is reserved to procure outside of the contract small quantities or to have minor essential services

executed if an emergency arises, the supplier’s point of supply is not situated at or near the place where the

goods are required, or the supplier’s services are not readily available.

21.4 Except as provided under GCC Clause 25, a delay by the supplier in the performance of its delivery obligations

shall render the supplier liable to the imposition of penalties, pursuant to GCC Clause 22, unless an extension

of time is agreed upon pursuant to GCC Clause 22.2 without the application of penalties.

21.5 Upon any delay beyond the delivery period in the case of a goods contract, the purchaser shall, without

cancelling the contract, be entitled to purchase goods of a similar quality and up to the same quantity in

substitution of the goods not supplied in conformity with the contract and toreturn any goods delivered

later at the supplier’s expense and risk, or to cancel the contract and buy such goods as may be required to

complete the contract and without prejudice to his other rights, be entitled to claim damages from the supplier.

22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of the goods or to perform the services

within the period(s) specified in the contract, the purchaser shall, without prejudice to its other remedies under

the contract, deduct from the contract price, as a penalty, a sum calculatedon the delivered price of the

delayed goods or unperformed services using the current prime interest rate calculated for each day of the

delay until actual delivery or performance. The purchaser may also consider termination of the contract

pursuant to GCC Clause 23.

23.1 The purchaser, without prejudice to any other remedy for breach of contract, by written notice of default sent

to the supplier, may terminate this contract in whole or in part:

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(a) if the supplier fails to deliver any or all of the goods within the period(s) specified in the contract,or within

any extension thereof granted by the purchaser pursuant to GCC Clause 21.2;

(b) if the supplier fails to perform any other obligation(s) under the contract; or

(c) if the supplier, in the judgement of the purchaser, has engaged in corrupt or fraudulent practicesin competing

for or in executing the contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the purchaser may procure,upon such

terms and in such manner, as it deems appropriate, goods, works or services similar to those undelivered,

and the supplier shall be liable to the purchaser for any excess costs for such similar goods, works or services.

25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the supplier shall not be liablefor forfeiture

of its performance security, damages, or termination for default if and to the extent that his delay in

performance or other failure to perform his obligations under the contract is the result of an event of

force majeure.

25.2 If a force majeure situation arises, the supplier shall promptly notify the purchaser in writing of such

condition and the cause thereof. Unless otherwise directed by the purchaser in writing, the supplier

shall continue to perform its obligations under the contract as far as is reasonably practical, and shall

seek all reasonable alternative meansfor performance not prevented by the force majeure event.

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

becomes bankrupt or otherwise insolvent. In this event, termination will be without compensation to the

supplier, provided that such termination will not prejudice or affect any right of action or remedy, which has

accrued or will accrue thereafter to the purchaser.

27.1 If any dispute or difference of any kind whatsoever arises between the purchaser and the supplierin connection

with or arising out of the contract, the parties shall make every effort to resolve amicably such dispute or

difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or difference by such mutual

consultation, then either the purchaser or the supplier may give notice to the other party of his intention to

commence with mediation. No mediation in respect of this matter may be commenced unless such notice is

given to the other party.

28.1 Should it not be possible to settle a dispute by means of mediation, it may be settled in a South African court

of law.

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

(a) the parties shall continue to perform their respective obligations under the contract unless they

otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier for goods delivered and

/ or services rendered according to the prescripts of the contract.

28.3 except in cases of criminal negligence or wilful misconduct, and in the case of infringement pursuant

to Clause 6;

a) the supplier shall not be liable to the purchaser, whether in contract, tort, or otherwise, for any indirect or

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consequential loss or damage, loss of use, loss of production, or loss of profits or interest costs, provided

that this exclusion shall not apply to any obligation of the supplier to paypenalties and/or damages to the

purchaser; and

b) the aggregate liability of the supplier to the purchaser, whether under the contract, in tort or otherwise, shall

not exceed the total contract price, provided that this limitation shall not apply tothe cost of repairing or

replacing defective equipment.

Bids should score a minimum point of 70% on the functionality evaluation in order to be considered for further evaluation.

The bids will be evaluated on the 80/20 or 90/10 preferential points system

• Evaluation Criteria: 80 or 90= Price, 20 or 10= Specific Goals as per the attached MBD 6.1 respectively

11. Quality assurance reviews of the work
12. Evaluation process

14.1 Evaluation Criteria

procurement regulation pertaining thereto. Functionality and 80/20 preferential point system will be used as per the SCM policy.

14.2 Evaluation Phases

The evaluation will be completed in 3 phases

• Phase 2: Functional evaluation
• Phase 3: Pricing and Preferential Procurement policy (80/20)

(082) 370 7404, email: [email protected] during working hours. For Supply Chain Management related enquiries, please contact Mr. Z. Khala