The National Industrial Participation (NIP) Programme, which is applicable to all government procurement
contracts that have an imported content, became effective on the 1 September 1996. The NIP policy and
guidelines were fully endorsed by Cabinet on 30 April 1997. In terms of the Cabinet decision, all state and
parastatal purchases / lease contracts (for goods, works and services) entered into after this date, are subject
to the NIP requirements. NIP is obligatory and therefore must be complied with. The Industrial Participation
Secretariat (IPS) of the Department of Trade and Industry (DTI) is charged with the responsibility of
administering the programme.
1 PILLARS OF THE PROGRAMME
1.1 The NIP obligation is benchmarked on the imported content of the contract. Any contract having an
imported content equal to or exceeding US$ 10 million or other currency equivalent to US$ 10 million
will have a NIP obligation. This threshold of US$ 10 million can be reached as follows:
(a) Any single contract with imported content exceeding US$10 million.
or
(b) Multiple contracts for the same goods, works or services each with imported content exceeding
US$3 million awarded to one seller over a 2-year period which in total exceeds US$10 million.
or
(c) A contract with a renewable option clause, where should the option be exercised the total
value of the imported content will exceed US$10 million.
or
(d) Multiple suppliers of the same goods work or services under the same contract, where the
value of the imported content of each allocation is equal to or exceeds US$ 3 million worth of
goods, works or services to the same government institution, which in total over a two (2) year
period exceeds US$10 million.
1.2 The NIP obligation applicable to suppliers in respect of sub-paragraphs 1.1 (a) to 1.1 (c) above will
amount to 30 % of the imported content whilst suppliers in respect of paragraph 1.1 (d) shall incur 30
% of the total NIP obligation on a pro-rata basis.
1.3 To satisfy the NIP obligation, the DTI would negotiate and conclude agreements such as investments,
joint ventures, sub-contracting, licensee production, export promotion, sourcing arrangements and
research and development (R&D) with partners or suppliers.
1.4 A period of seven years has been identified as the time frame within which to discharge the obligation.
2 REQUIREMENTS OF THE DEPARTMENT OF TRADE AND INDUSTRY
2.1 In order to ensure effective implementation of the programme, successful bidders (contractors) are
required to, immediately after the award of a contract that is in excess of R10 million (ten million
Rands), submit details of such a contract to the DTI for reporting purposes.
2.2 The purpose for reporting details of contracts in excess of the amount of R10 million (ten million Rands)
is to cater for multiple contracts for the same goods, works or services; renewable contracts and
multiple suppliers for the same goods, works or services under the same contract as provided for in
paragraphs 1.1.(b) to 1.1. (d) above.
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Province of KwaZulu-Natal Contract No. ZNB02844/00000/00/POR/INF/25/T
Department of Transport
3 BID SUBMISSION AND CONTRACT REPORTING REQUIREMENTS OF BIDDERS AND
SUCCESSFUL BIDDERS (CONTRACTORS)
3.1 Bidders are required to sign and submit this Standard Bidding Document (SBD 5) together with the
bid on the closing date and time.
3.2 In order to accommodate multiple contracts for the same goods, works or services; renewable
contracts and multiple suppliers for the same goods, works or services under the same contract as
indicated in sub-paragraphs 1.1 (b) to 1.1 (d) above and to enable the DTI in determining the NIP
obligation, successful bidders (contractors) are required, immediately after being officially notified
about any successful bid with a value in excess of R10 million (ten million Rands), to contact and
furnish the DTI with the following information:
• Bid / contract number.
• Description of the goods works or services.
• Date on which the contract was accepted.
• Name, address and contact details of the government institution.
• Value of the contract.
• Imported content of the contract, if possible.
3.3 The information required in paragraph 3.2 above must be sent to the Department of Trade and
Industry, Private Bag X 84, Pretoria, 0001 for the attention of Mr Elias Malapane within five (5) working
days after award of the contract. Mr Malapane may be contacted on telephone (012) 394 1401,
facsimile (012) 394 2401 or e-mail at Elias@thedti.gov.za for further details about the programme.
4 PROCESS TO SATISFY THE NIP OBLIGATION
4.1 Once the successful bidder (contractor) has made contact with and furnished the DTI with the
information required, the following steps will be followed:
a. the contractor and the DTI will determine the NIP obligation;
b. the contractor and the DTI will sign the NIP obligation agreement;
c. the contractor will submit a performance guarantee to the DTI;
d. the contractor will submit a business concept for consideration and approval by the DTI;
e. upon approval of the business concept by the DTI, the contractor will submit detailed business
plans outlining the business concepts;
f. the contractor will implement the business plans; and
g. the contractor will submit bi-annual progress reports on approved plans to the DTI.
4.2 The NIP obligation agreement is between the DTI and the successful bidder (contractor) and,
therefore, does not involve the purchasing institution.
Bid number ...................................... Closing date: ....................................
Name of bidder.......................................................................................
Postal address .......................................................................................
.......................................................................................
Signature..................................... Name (in print) ..................................
Date.................................................
CIDB OPEN TENDER: Tender Ver 16-04-2025: COTO T24
Province of KwaZulu-Natal Contract No. ZNB02844/00000/00/POR/INF/25/T
Department of Transport
SBD 6.1
PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT
REGULATIONS 2022
This preference form must form part of all tenders invited. It contains general information and
serves as a claim form for preference points for specific goals.
NB: BEFORE COMPLETING THIS FORM, TENDERERS MUST STUDY THE GENERAL
CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF THE
TENDER AND PREFERENTIAL PROCUREMENT REGULATIONS, 2022
1. GENERAL CONDITIONS
1.1 The following preference point systems are applicable to invitations to tender:
- the 80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable taxes
included); and
- the 90/10 system for requirements with a Rand value above R50 000 000 (all applicable taxes
included).
1.2 To be completed by the organ of state
a) The applicable preference point system for this tender is the 90/10 preference point
system.
1.3 Points for this tender (even in the case of a tender for income-generating contracts) shall be awarded
for:
(a) Price; and
(b) Specific Goals.
1.4 To be completed by the organ of state:
The maximum points for this tender are allocated as follows:
POINTS
PRICE 90
SPECIFIC GOALS 10
Total points for Price and SPECIFIC GOALS 100
1.5 Failure on the part of a tenderer to submit proof or documentation required in terms of this tender to
claim points for specific goals with the tender, will be interpreted to mean that preference points for
specific goals are not claimed.
1.6 The organ of state reserves the right to require of a tenderer, either before a tender is adjudicated or
at any time subsequently, to substantiate any claim in regard to preferences, in any manner required
by the organ of state.
2. DEFINITIONS
(a) “tender” means a written offer in the form determined by an organ of state in response to an
invitation to provide goods or services through price quotations, competitive tendering process
or any other method envisaged in legislation;
(b) “price” means an amount of money tendered for goods or services, and includes all applicable
taxes less all unconditional discounts;
CIDB OPEN TENDER: Tender Ver 16-04-2025: COTO T25
Province of KwaZulu-Natal Contract No. ZNB02844/00000/00/POR/INF/25/T
Department of Transport
(c) “rand value” means the total estimated value of a contract in Rand, calculated at the time of bid
invitation, and includes all applicable taxes;
(d) “tender for income-generating contracts” means a written offer in the form determined by an organ
of state in response to an invitation for the origination of income-generating contracts through any
method envisaged in legislation that will result in a legal agreement between the organ of state and a
third party that produces revenue for the organ of state, and includes, but is not limited to, leasing and
disposal of assets and concession contracts, excluding direct sales and disposal of assets through
public auctions; and
(e) “the Act” means the Preferential Procurement Policy Framework Act, 2000 (Act No. ).
3. FORMULAE FOR PROCUREMENT OF GOODS AND SERVICES
3.1. POINTS AWARDED FOR PRICE
3.1.1 THE 90/10 PREFERENCE POINT SYSTEMS
A maximum of 90 points is allocated for price on the following basis:
90/10
Pt−Pmin
Ps= 90(1− )
Pmin
Where
Ps = Points scored for price of tender under consideration
Pt = Price of tender under consideration
Pmin = Price of lowest acceptable tender
4. POINTS AWARDED FOR SPECIFIC GOALS
4.1. In terms of Regulation 4(2); 5(2); 6(2) and 7(2) of the Preferential Procurement Regulations,
preference points must be awarded for specific goals stated in the tender. For the purposes of this
tender the tenderer will be allocated points based on the goals stated in table 1 below as may be
supported by proof/ documentation stated in the conditions of this tender:
4.2. In cases where organs of state intend to use Regulation 3(2) of the Regulations, which states that, if it
is unclear whether the 80/20 or 90/10 preference point system applies, an organ of state must, in the
tender documents, stipulate in the case of—
(a) an invitation for tender for income-generating contracts, that either the 80/20 or 90/10
preference point system will apply and that the highest acceptable tender will be used to
determine the applicable preference point system: or
(b) any other invitation for tender, that either the 80/20 or 90/10 preference point system will apply
and that the lowest acceptable tender will be used to determine the applicable preference
point system, then the organ of state must indicate the points allocated for specific goals for
both the 90/10 and 80/20 preference point system.
CIDB OPEN TENDER: Tender Ver 16-04-2025: COTO T26
Province of KwaZulu-Natal Contract No. ZNB02844/00000/00/POR/INF/25/T
Department of Transport
Table 1: Specific goals for the tender and points claimed are indicated per the table below.
Note to tenderers: The tenderer must indicate how they claim points for each preference point
system.)
Number of points Number of points claimed
allocated (90/10 system)
The specific goals
(90/10 system) (To be completed by the
allocated points in terms
tenderer) of this tender (To be completed by the organ
of state)
1. A Tenderer who is at Max points = 6 points
least 51% owned by
a) Black people 3 points
b) Black people who are 1 point
youth
c) Black people who are 1 point
women
d) Black people with 1 point
disabilities
2. Promotion of Tenderer’s Max points = 2 points
located in a Specific
Area
For CIDB grade 1-3 work:
Operating business address
2 points
located within the Local
municipality
For CIDB grade 4 -6 work: 2 points
Operating business address
located within the District
municipality
For CIDB grade 7 and above 2 points
work: Operating business
address located within the
Province
3. The creation of new jobs Max points = 2 points
or the intensification of
labour absorption
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Department of Transport
DECLARATION WITH REGARD TO COMPANY/FIRM
4.3. Name of company/firm...............................................................................
4.4. Company registration number: .....................................................................
4.5. TYPE OF COMPANY/ FIRM
Partnership/Joint Venture / Consortium
One-person business/sole propriety
Close corporation
Public Company
Personal Liability Company
(Pty) Limited
Non-Profit Company
State Owned Company
[TICK APPLICABLE BOX]
4.6. I, the undersigned, who is duly authorised to do so on behalf of the company/firm, certify that the
points claimed, based on the specific goals as advised in the tender, qualifies the company/ firm for
the preference(s) shown and I acknowledge that:
i) The information furnished is true and correct;
ii) The preference points claimed are in accordance with the General Conditions as indicated in
paragraph 1 of this form;
iii) In the event of a contract being awarded as a result of points claimed as shown in paragraphs
1.4 and 4.2, the contractor may be required to furnish documentary proof to the satisfaction of
the organ of state that the claims are correct;
iv) If the specific goals have been claimed or obtained on a fraudulent basis or any of the conditions
of contract have not been fulfilled, the organ of state may, in addition to any other remedy it may
have –
(a) disqualify the person from the tendering process;
(b) recover costs, losses or damages it has incurred or suffered as a result of that
person’s conduct;
(c) cancel the contract and claim any damages which it has suffered as a result of
having to make less favourable arrangements due to such cancellation;
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Department of Transport
(d) recommend that the tenderer or contractor, its shareholders and
directors, or only the shareholders and directors who acted on a
fraudulent basis, be restricted from obtaining business from any organ
of state for a period not exceeding 10 years, after the audi alteram
partem (hear the other side) rule has been applied; and
(e) forward the matter for criminal prosecution, if deemed necessary.
..............................................
SIGNATURE(S) OF TENDERER(S)
SURNAME AND NAME: ................................................................
DATE: ...............................................................
ADDRESS: ...............................................................
...............................................................
...............................................................
...............................................................
CIDB OPEN TENDER: Tender Ver 16-04-2025: COTO T29
Province of KwaZulu-Natal Contract No. ZNB02844/00000/00/POR/INF/25/T
Department of Transport
B-BBEE EXEMPTED AFFIDAVIT FOR EXEMPTED MICRO ENTERPRISES
I, the undersigned,
Full name & Surname
Identity number
Hereby declare under oath as follows:
1. The contents of this statement are to the best of my knowledge a true reflection of the facts.
2. I am a member / director / owner of the following enterprise and am duly authorised to act on its behalf:
Enterprise Name
Trading Name (If
Applicable):
Registration Number
Enterprise Physical
Address:
Type of Entity (CC, (Pty)
Ltd, Sole Prop etc.):
Nature of Business: BEP Contractor Supplier
(Built Environment
Professional)
Definition of “Black As per the Broad-Based Black Economic Empowerment Act as
People” Amended by Act No “Black People” is a generic term which
means Africans, Coloureds and Indians –
(a) who are citizens of the Republic of South Africa by birth or descent;
or
(b) who became citizens of the Republic of South Africa by
naturalisation-
I. before 27 April 1994; or
II. on or after 27 April 1994 and who would have been entitled to
acquire citizenship by naturalization prior to that date;”
Definition of “Black “Black Designated Groups means:
Designated Groups” (a) unemployed black people not attending and not required by law to
attend an educational institution and not awaiting admission to an
educational institution;
(b) Black people who are youth as defined in the National Youth
Commission Act of 1996;
(c) Black people who are persons with disabilities as defined in the
Code of Good Practice on employment of people with disabilities
issued under the Employment Equity Act;
(d) Black people living in rural and under developed areas;
(e) Black military veterans who qualifies to be called a military veteran
in terms of the Military Veterans Act ;”
CIDB OPEN TENDER: Tender Ver 16-04-2025: COTO T30