Appointment of a Service Provider to Supply and Deliver Livestock Identification and Traceability System (lits) Equipment Including Rfid Ear Tags, Rfid Tag Readers, and Rfid Tag Applicators, to the Department of Agriculture (doa) National Office

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:

suppliers of the same goods, works 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. of 44 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. 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

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:

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 [email protected] 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; of 44 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.................................................. Js475wc of 44 SBD 6.1 PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2022 BID PROCESS (EQUAL OR BELOW R 50 MILLION) 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

80/20 system for requirements with a Rand value of up to R50 000 000 (all applicable taxes included); and 2.2 To be completed by the organ of state a) The applicable preference point system for this tender is the 80/20 preference point system. b) 80/20 preference point system will be applicable in this tender. The lowest/ highest acceptable tender will be used to determine the accurate system once tenders are received. 2.3 Points for this tender (even in the case of a tender for income-generating contracts) shall be awarded for:

Goals. 2.4 To be completed by the organ of state: The maximum points for this tender are allocated as follows: POINTS PRICE 80 SPECIFIC GOALS 20 Total points for Price and SPECIFIC GOALS 100 2.5 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. 2.6 Tenderers that fail to claim points for specific goals or that fail to fully complete the table in paragraph 2.12 below, will not be awarded points for specific goals. 2.7 Tenderers that make a calculation error when claiming points as per the table in paragraph 2.12 below, will not be awarded points for specific goals. Please take note of the examples on how to calculate points for specific goals as per paragraph 2.12 below. 2.8 Tenderers that fail to submit the correct SBD 6.1 form as issued by the Department of Agriculture, Land Reform and Rural Development, will not be awarded points for specific goals. 2.9 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. of 7 of 44 2.10 Tenderers who wish to claim points in terms of the table in paragraph 2.12 below need to provide proof for each point claimed as guided below: 2.10.1 Historically Disadvantaged individuals (HDI):

a copy of Identity Document (ID) and company registration document. 2.11 The Department will use the Central Supplier Database and documents submitted by the tenderer to verify the points claimed for specific goals. 2.12 Specific goals for the tender and points claimed are indicated per the table below. (Note to organs of state: Where either the 90/10 or 80/20 preference point system is applicable, corresponding points must also be indicated as such. Note to tenderers: The tenderer must indicate how they claim points for each preference point system.) Number of Percentage Number of points ownership points claimed The specific goals allocated points equity (80/20 system) allocated in terms of this tender (To be (To be (80/20 system) completed by completed by the tenderer) the tenderer) A person historically disadvantages by unfair discrimination on the basis of race: provided that a person historically disadvantaged on the basis of race refers to Africans, Coloureds, Indians and people of Chinese descent who are South African citizen by birth or descent; 8 who become citizen of the Republic of South Africa by Naturalisation- a) Before 27 April 1994 I. On or before 27 April 1994 and who would been entitled to acquire of 7 of 44 citizenship by naturalisation prior to the date. II. Who is female 5 III. Who has a disability 2 IV. Specific goal: Who is youth 2 V. Specific goal: Promotion of South African owned enterprises The number of points claimed for specific goals, are calculated as follow:

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 the table in paragraph 2.12 above 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—

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 of 7 of 44 90/10 and 80/20 preference point system. 4.3 A consortium or joint venture may, based on the percentage of the contract value managed or executed by their members, be entitled to claim points in respect of specific contract participation goals. 4.4 A tenderer will not be awarded points for HDI if it is indicated in the tender documents that such a tenderer intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for the same number or more points for equity ownership. 4.5 A tenderer awarded a contract as a result of preference for contracting with, or providing equity ownership to a HDI, may not subcontract more than 25% of the value of the contract to a tenderer who is not a HDI or does not qualify for the same number or more preference for equity ownership.

specific requirements found