Income-generating contract: supply, installation, maintenance and operation of poster receptacles for commercial and events advertising in ethekwini municipality (36 months)

Closing date and time: Friday, 02 October 2026 at 11:00am (compulsory). Clarification meeting: none (not compulsory). Query deadline: email queries to Lindiwe Kubheka by 17 September 2026; consolidated Q&A uploaded by 25 September 2026. Tender validity period: 120 days after opening plus 12 months.

There will be no clarification meeting.

General/Contractual queries: Lindiwe Kubheka, Tel: 031-311-7803, Email: [email protected]. Technical queries: n/a. ESP System queries: Lindo Dlamini, Tel: 031-322-7133 / 031-322-7153, Email: [email protected]. ESP Technical queries: Kgopotso Maja, Tel: 031 322 3808, Email: [email protected]. Appeals: Ms S. Pillay, PO Box 1394, Durban 4000, Email: [email protected] (within 14 days of decision). Submission address: Tender Box, ground floor foyer, Municipal Buildings, 166 KE Masinga Road (Old Fort Rd), Durban.

Submission method: signed hard copy deposited in the Tender Box at the ground floor foyer, Municipal Buildings, 166 KE Masinga Road (Old Fort Rd), Durban, AND an identical electronic copy via the eThekwini Municipality JDE System (ESP Module). Hard copy is the ruling version; electronic copy must be identical or the tender is invalid. Closing: Friday, 02 October 2026 at 11:00am. No fax, email, or post accepted. Tenderers must resolve all JDE access and submission queries before the closing date. Tender validity: 120 days after opening plus a further 12 months unless the bidder advises otherwise in writing; the Municipality may request confirmation of validity at any time during the 12-month period. Returnable documents (all must be completed, signed and submitted): Authority of Signatory; Tax Compliance Status PIN or Tax Clearance Certificate; Declaration of Municipal Fees (with account numbers); Declaration with respect to the Occupational Health and Safety Act (37.2 Agreement); MBD 4 – Declaration of Interest; MBD 5 – Declaration for Procurement Above R10 Million (if applicable); MBD 6.1 – Preference Points Claim; MBD 8 – Declaration of Bidder's Past Supply Chain Management Practices; MBD 9 – Certificate of Independent Bid Determination; Official Tender Form (Section 9). Additional returnables per SCT 4(6) (Section 10): CSD Full Report; Tax Clearance Certificate or PIN; Tenderer's Municipal Bill and valid Acknowledgement of Debt or Lease Agreement; Department of Labour Letter of Good Standing; Audited consecutive 3-year Annual Financial Statements; Tenderer's Operational Plan; Clientele Record (client contracts/reference letters); Revenue Model & Business Case for Financial Sustainability. Disqualification risks: missing or unsigned returnable forms; late submission; electronic copy not identical to hard copy; failure to attend compulsory briefing (none for this tender); municipal fees not up to date or no Acknowledgement of Debt; non-compliance with Regulation 44 (persons in service of the state).

Additional returnable schedules and forms (Section 10): i) Central Supplier Database (CSD) Full Report; ii) Tax Clearance Certificate or Pin Document; iii) Tenderer's Municipal Bill and Valid Acknowledgement of Debt (if any) or Valid Lease Agreement; iv) Department of Labour's Letter of Good Standing; v) Audited and Consecutive 3 years Annual Financial Statements; vi) 37.2 Agreement in Occupational Health and Safety Act; vii) Tenderer's Operational Plan; viii) Clientele Record – Copy of Clients/Customers Contracts and/or Reference Letters; ix) Revenue Model & Business Case for Financial Sustainability.

Two-stage evaluation. Stage 1 – Functionality (threshold): minimum 70/100 points required to proceed. Scoring scale: 0 (Nil), 40 (Poor), 70 (Satisfactory), 90 (Good), 100 (Very Good). Criteria: 1) Operations and Management Plan (20 points) – assessed on 8 elements: key deliverables/performance requirements; safety, legal, regulatory, compliance; project governance (key personnel, roles, reporting); inventory/asset management/control; royalty administration/revenue management/payment processes; sustainability/maintenance/lifecycle; unauthorised sign removal/transportation; financial risk mitigation. 2) Tenderer's Experience (50 points) – proven track record over last 5 years via reference letters/contracts (min 1-year duration, on client letterhead, dated, signed, stipulating receptacle quantities, contract duration/start-end dates per contract number). Quantities accumulated across contracts. Scoring bands: 5,000–6,000 units = 20 pts; 6,001–7,000 = 35 pts; 7,001–8,000 = 45 pts; >8,000 = 50 pts. 3) Financial Sustainability – Revenue Model (30 points) – 3-year financial plan covering: capital expenditure; funding source/structure; annual revenue projection; annual cash flow; operating/maintenance cost projections; sensitivity analysis (maintenance, operating costs, demand, advertising sales, occupancy, revenue growth, interest rates, inflation). Scoring: a+b only = 12 pts; a+b+c+d = 21 pts; a+b+c+d+e = 27 pts; all a–f = 30 pts. Stage 2 – Price and Preference (80/20). Price points formula for income-generating contracts: Ps = 80(1 + (Pt-Pmax)/Pmax) where Pt = tender offer, Pmax = highest acceptable tender. Preference points (20) from MBD 6.1 for Specific Goals: Ownership Goal (60% weighting) – Race: Black (w1=40%), Gender: Female (w2=30%), Disabilities (w3=30%); RDP Goal (40% weighting) – Location: Not in SA (0), SA (3.2), KZN (5.6), ETM (8). Proof: CIPC registration, CSD report, B-BBEE Certificate, Consolidated B-BBEE Certificate for JV/Consortium/Trust, JV/Consortium/Trust Agreement.

Scope: Income-generating contract for supply, installation, maintenance and operation of receptacles for display of commercial poster and events poster advertisements, and management of advertising financial costs in eThekwini Municipality for 36 months. Operations and Management Plan must address: identification/management of key deliverables and performance requirements; safety, legal, regulatory, compliance measures; project governance structure (key personnel, roles, responsibilities, reporting lines); inventory, asset management and control procedures; royalty administration, revenue management and payment processes; sustainability, maintenance and lifecycle management; procedures for removal and transportation of unauthorised advertising signs affixed to street pole lights reserved for this contract; financial risk mitigation. Experience requirement: proven track record over last 5 years managing advertising streetlight pole units (minimum 1-year contracts, on client letterhead, dated, signed, with receptacle quantities and contract dates). Revenue Model: 3-year financial plan demonstrating viability and ability to meet contractual obligations including revenue-sharing payments, covering capex, funding, revenue projections, cash flow, O&M costs, sensitivity analysis. Contract period: 36 months. Successful tenderer must sign Contract Form (MBD 7).

Operations and Management Plan must address: a) Identification and management of all key deliverables and performance requirements; b) Safety, legal, regulatory, and compliance measures; c) Project governance structure including key personnel, roles, responsibilities, reporting lines; d) Inventory, asset management, and control procedures; e) Royalty administration, revenue management, and payment processes; f) Sustainability, maintenance, and lifecycle management measures; g) Procedures for removal and transportation of unauthorised advertising signs affixed to street pole lights reserved for this contract; h) Financial risk mitigation.

Proven track record over last 5 years required via reference letters or contracts (minimum 1-year duration, on client letterhead, dated, signed, stipulating receptacle quantities, contract duration/start-end dates per contract number). Multiple contracts' quantities accumulated for scoring. Scoring bands: 5,000–6,000 units (Poor, 20 pts), 6,001–7,000 (Satisfactory, 35 pts), 7,001–8,000 (Good, 45 pts), >8,000 (Very Good, 50 pts).

Operations and Management Plan must address quality-related elements: identification/management of key deliverables and performance requirements; safety, legal, regulatory and compliance measures; inventory, asset management and control procedures; sustainability, maintenance and lifecycle management; financial risk mitigation. Revenue Model must demonstrate financial viability and ability to meet contractual obligations. Audited consecutive 3-year Annual Financial Statements required. Department of Labour Letter of Good Standing required. 37.2 Agreement in terms of Occupational Health and Safety Act required.

Income-generating contract: tenderer pays Municipality. Minimum offer: 20% of monthly gross revenue AND R650,000/month (excl VAT). Price points formula for income-generating: Ps = 80(1 + (Pt-Pmax)/Pmax) where Pt = tender offer, Pmax = highest acceptable tender. Prices exclusive and inclusive of VAT stated separately on Official Tender Form. Firm prices per 12-month period allowed (free from fluctuations). Revenue Model: 3-year financial plan demonstrating viability and ability to meet contractual obligations including revenue-sharing payments, covering capex, funding, revenue projections, cash flow, O&M costs, sensitivity analysis.

Income-generating contract: tenderer pays the Municipality. Minimum tender offer: 20% of monthly gross revenue AND R650,000/month (excl VAT); offers below this are non-responsive. Price points formula: Ps = 80(1 + (Pt-Pmax)/Pmax) where Pt = tender offer, Pmax = highest acceptable tender. Prices quoted in Rand, nett (after brokerage/discount), exclusive and inclusive of VAT stated separately on Official Tender Form. Firm prices per 12-month period permitted (free from fluctuations). Revenue Model required: 3-year financial plan covering capital expenditure, funding source/structure, annual revenue projections, annual cash flow, operating and maintenance cost projections, sensitivity analysis (maintenance costs, operating costs, consumer demand, advertising sales, occupancy rates, revenue growth, interest rates, inflation). Audited consecutive 3-year Annual Financial Statements required. Financial standing evidence may be requested by Head: SCM. Payment per Conditions of Contract; factoring not accepted. Tender validity: 120 days after opening plus 12 months. Withdrawal during validity requires payment of R1,000 to Municipality (waivable).

Mandatory: CSD registration (MAAA number) at tender closing; applies individually to each JV partner. Valid SARS Tax Compliance Status PIN or Tax Clearance Certificate. Municipal fees fully paid or valid Acknowledgement of Debt/Lease Agreement (account numbers required). Not in service of the state (Regulation 44). Authority of Signatory (Board Resolution/Power of Attorney for JV). Declaration of Municipal Fees signed with account numbers. 37.2 Agreement in terms of Occupational Health and Safety Act. Department of Labour Letter of Good Standing. Audited consecutive 3-year Annual Financial Statements. MBD 4, MBD 5 (if >R10m), MBD 6.1, MBD 8, MBD 9 completed and signed. Joint Venture: acceptable JV Agreement and consolidated B-BBEE Certificate. B-BBEE Specific Goals: Ownership (Race Black 40%, Female 30%, Disabilities 30%) and RDP Location (SA 3.2, KZN 5.6, ETM 8). Proof: CIPC, CSD report, B-BBEE Certificate, Consolidated B-BBEE Certificate for JV/Consortium/Trust. Minimum functionality score 70/100. All functionality supporting documents (Operational Plan, Revenue Model Business Case, Clientele Records) must be submitted or bid deemed non-responsive.

Preference Points Claim (MBD 6.1) required. Specific Goals: Ownership Goal (60% weighting) with categories: Race – Black (w1=40%), Gender – Female (w2=30%), Disabilities (w3=30%). Points per ownership percentage: 0% = 0 pts; >0% and <51% = 1.92/1.44/1.44 pts; >51% and <100% = 3.36/2.52/2.52 pts; 100% = 4.8/3.6/3.6 pts. RDP Goal (40% weighting): Promotion of South African owned enterprises based on CSD address – Not in SA (0), SA (3.2), KZN (5.6), ETM (8). Proof: CIPC registration, CSD report, B-BBEE Certificate, Consolidated B-BBEE Certificate for JV/Consortium/Trust, Agreement for JV/Consortium/Trust.

37.2 Agreement in terms of Occupational Health and Safety Act required as returnable document. Operations and Management Plan must address safety, legal, regulatory, and compliance measures applicable to the project. Department of Labour Letter of Good Standing required. Compliance with Occupational Health and Safety Act and relevant Regulations mandatory.

Contract period: 36 months. Successful tenderer must sign Contract Form (MBD 7). Regulation 44 applies: no awards to persons in service of the state. Tender validity: 120 days after opening plus 12 months; Municipality may request confirmation anytime. Municipality may cancel tender at any time before award without liability. Negotiations with preferred bidders per Regulation 24 of MFMA (no unfair advantage, no higher price than submitted). Payment per Conditions of Contract; factoring not accepted. Appeals within 14 days to City Manager attention Ms S Pillay ([email protected], PO Box 1394). Change of ownership/major policy must be disclosed in covering letter. Municipality not bound to accept lowest/any tender; may accept whole/part; may accept multiple tenders; no minimum quantity binding; successful tenderer bound to provide stipulated quantities. Financial standing evidence may be required. Capability and past breach of contract considered. Withdrawal during validity requires R1,000 payment to Municipality (waivable).

Special Conditions of Tender (SCT) take precedence over Standard Conditions. Tender document: cover page + 59 pages. Documents issued electronically from eTenders or eThekwini website; print on A4 one-sided and bind. Queries: General/Contractual to Lindiwe Kubheka by 17 Sep 2026, answers uploaded 25 Sep 2026; Technical: n/a. No clarification meeting. Submission: signed hard copy to Tender Box at 166 KE Masinga Road, Durban by 02 Oct 2026 11:00am AND electronic copy via JDE ESP Module. Hard copy is ruling version; electronic must be identical or tender invalid. Resolve JDE access before closing. Tender validity: 120 days after opening plus further 12 months unless bidder advises otherwise in writing. Municipality may request validity confirmation anytime. Additional returnables per SCT 4(6) listed in Section 10. Evaluation: Price and Preference with functionality per SCM Policy, PPPFA, Regulations (2022). 80/20 system applied. Price points per Regulation 4.1. Minimum functionality 70/100. Complaints/objections per Section 49 of eThekwini SCM Policy within 14 days to Ms S Pillay ([email protected], PO Box 1394) with refundable admin fee R6,131.00 incl VAT paid to FNB 631 6574 6331 referencing contract number. ACT 1: CSD registration mandatory at closing (MAAA number required). ACT 2: Minimum tender offer fixed at 20% of monthly gross revenue AND R650,000/month (excl VAT); offers below deemed non-responsive. Industry benchmarks: 20–25% sustainable, 26–35% marginal (requires due diligence), above 35% high risk/unsustainable.

Eligibility: CSD registration mandatory at tender closing (MAAA number required on Section 1 information table); applies individually to each JV partner. Tender offer must meet minimum: 20% of monthly gross revenue AND R650,000/month (excl VAT) – offers below deemed non-responsive. Must submit all functionality supporting documents (Operational Plan, Revenue Model Business Case, Clientele Records) or bid deemed non-responsive. Must achieve minimum 70/100 functionality points to proceed to price/preference evaluation. Joint Venture requires acceptable JV Agreement and consolidated B-BBEE Certificate. Valid Tax Clearance Certificate or TCS PIN required. Municipal fees fully paid or Acknowledgement of Debt concluded. Authority of Signatory (Board Resolution or Power of Attorney for JV) required.

Evaluation uses 80/20 preference points system. Stage 1: Functionality threshold – minimum 70/100 points required to proceed. Scoring scale: 0 (Nil), 40 (Poor), 70 (Satisfactory), 90 (Good), 100 (Very Good). Functionality criteria: 1) Operations and Management Plan (20 points) – assessed on 8 elements including key deliverables, safety/compliance, governance, inventory/asset management, royalty administration, sustainability/maintenance, unauthorised sign removal, financial risk mitigation. 2) Tenderer's Experience (50 points) – proven track record over last 5 years managing advertising streetlight pole units: Poor (5,000–6,000 units = 20 pts), Satisfactory (6,001–7,000 = 35 pts), Good (7,001–8,000 = 45 pts), Very Good (>8,000 = 50 pts). 3) Financial Sustainability – Revenue Model (30 points) – 3-year financial plan demonstrating viability and ability to meet contractual obligations including revenue-sharing payments. Stage 2: Price and Preference (80/20). Price points formula for income-generating contracts: Ps = 80(1 + (Pt-Pmax)/Pmax). Specific Goals: Ownership Goal (60% weighting) – Race: Black (40%), Gender: Female (30%), Disabilities (30%); RDP Goal (40% weighting) – Location: Not in SA (0), SA (3.2), KZN (5.6), ETM (8).