Long-term lease of municipal property in govan mbeki avenue, gqeberha

The tender invites proposals for the long-term lease of the ground floor retail space (±1 000 m²) in the Sarah Baartman District Municipal Building at 32 Govan Mbeki Avenue, Gqeberha. The property features 3 female toilets, 2 male toilets with urinals, a kitchen (7 m²), small storage (4 m²), two strong rooms (50 m² each), a loading zone, off-street parking, and prominent street frontage with signage opportunities. The lease period is a minimum of 5 years (negotiable) and availability is negotiable. Bidders must submit a proposal that includes development of the property and the proposed usage, and demonstrate financial ability to execute the contract. Certified ID copies of applicants or directors/owners are required.

Closing date: 02 October 2026. Closing time: 12h00 noon. Bid opening: same day, after closing, in Committee Room No. 1, 6th Floor, 32 Govan Mbeki Avenue, Gqeberha. Notice date: 01 September 2026. No compulsory briefing or site visit is mentioned in the document. Offer validity period: 90 days from the closing date.

Technical enquiries: Mr M Mbanga or T Mbukushe, telephone 041 508 7088 / 041 508 7035, email [email protected] / [email protected]. SCM enquiries: Ms Khanyisile Notshulwana, telephone 041 508 7007, email [email protected]. Physical submission address: Bid Box, 4th Floor, 32 Govan Mbeki Avenue, Gqeberha. Postal address: Sarah Baartman District Municipality, PO Box 318, Gqeberha, 6000. Municipal Manager: Ms U Daniels.

Submission method: sealed envelope placed in the bid box on the 4th Floor, 32 Govan Mbeki Avenue, Gqeberha. Envelope must be clearly marked "BID NO. 58/2025: LEASE OF PROPERTY IN GOVAN MBEKI - SBDM". Closing time: 12h00 noon on 02 October 2026. Late, incomplete, facsimiled, emailed, or telephonic bids will not be accepted. Bids must be submitted on the original official forms provided by the municipality; printed copies from the website must be the original printed document. Bids will be opened publicly in Committee Room No. 1, 6th Floor, 32 Govan Mbeki Avenue, Gqeberha, after the closing time. The bid box is open during office hours (08h00–16h30, Monday to Friday). Offer validity: 90 days from the closing date.

Returnable forms and documents (all must be completed, signed, and submitted):

• MBD 1 (Invitation to Bid): cover page with bidder details and signature.
• MBD 4 (Declaration of Interest): discloses whether any director or shareholder is employed by the state or connected to anyone at the municipality.
• MBD 5 (Declaration for Procurement Above R10 Million): required if the bid value exceeds R10 million; includes submission of audited financial statements for the past three years (or since establishment).
• MBD 6.1 (Preference Points Claim Form): claims B-BBEE and locality points; must be accompanied by a valid B-BBEE certificate or sworn affidavit and proof of address of the office dealing with the project.
• MBD 8 (Declaration of Bidder's Past Supply Chain Management Practices).
• MBD 9 (Certificate of Independent Bid Determination): certifies no collusion or price disclosure with competitors.
• Company registration (CK) documents and certified ID copies of directors/owners.
• Municipal statement of account for three months or a valid lease agreement for both the bidding entity and its directors/owners; if unavailable, an affidavit declaring no municipal debt older than 30 days.
• Proof of address of the office dealing with the project (lease agreement or municipal account in the bidder's name) to claim locality points.
• Proof of CSD registration (CSD supplier number MAAA...) and a tax compliance status of "Tax Compliant" on the CSD.
• Pricing schedule (Part 2.2) completed in full, inclusive of VAT at 15%.

Disqualification risks: any mandatory form left unsigned or omitted; submission after closing time; bids not on official forms; failure to provide required municipal account/lease/affidavit; tax status not "Tax Compliant" on CSD; bidder or director in the service of the state.

Evaluation uses the 80/20 preference points system (total points = 100).

• Price: 80 points (VAT inclusive). Points calculated using the standard 80/20 formula where Ps = 80

• (1 - (Pt - Pmin)/Pmin).

• B-BBEE status level of contribution: maximum 10 points. Points per level: Level 1 = 10, Level 2 = 9, Level 3 = 8, Level 4 = 6, Level 5 = 4, Level 6 = 3, Level 7 = 2, Level 8 = 1, Non-compliant = 0. An original/valid B-BBEE verification certificate (SANAS-accredited agency, IRBA-approved auditor, or accounting officer) or a sworn affidavit for EMEs must be submitted to claim points; otherwise 0 points.
• Locality: maximum 10 points. Points: within Sarah Baartman District Municipality jurisdiction = 10; within Eastern Cape province = 8; within South Africa = 5; outside South Africa = 1. Proof of address of the office dealing with the project (lease agreement or municipal account in bidder's name) must be submitted to claim points; otherwise 0 points.
• The bidder with the highest total points wins. Tie-break: highest specific-goal points (B-BBEE + locality), then highest functionality points (if applicable), then drawing of lots.
• No minimum functionality threshold is stated; the award will be made to one service provider.
• The municipality may request clarification or additional information; the bidder must respond within 48 hours.
• Value for money is a key consideration; the lowest or only bid will not necessarily be accepted.

Scope: Long-term lease of the ground floor retail space in the Sarah Baartman District Municipal Building, Erf 1850, 32 Govan Mbeki Avenue, Gqeberha, 6002, Eastern Cape.

Property details: ±1 000 m² on ground floor; 3 female toilets; 2 male toilets (with 2 urinals); 1 kitchen (7 m²); 1 small storage (4 m²); 2 strong rooms (50 m² each); 1 loading zone in front of the building; off-street parking; prominent street frontage with signage opportunities; excellent visibility and foot traffic.

Lease period: minimum 5 years, negotiable. Availability: negotiable.

Bidder must submit a proposal that includes development of the property and the proposed usage. Financial ability to execute the contract must be demonstrated. Certified ID copies of applicants (individuals) or directors/owners (companies) required.

Pricing schedule (Part 2.2) requires the bidder to quote a monthly rental for the entire ground floor (1 000 m²) excluding water and electricity consumption (Item 1.1), plus an additional costs line (Item 1.2). Sub-total, VAT at 15%, and grand total (monthly rental) must be shown. Escalation is 8% per annum with rental reviewed every five years. The schedule must be completed in full. All rates inclusive of VAT. Offer valid for 90 days from closing date.

Pricing format: monthly rental for the entire ground floor (1 000 m²) excluding water and electricity consumption, plus an additional costs line item. Rates must be inclusive of VAT at 15%. The pricing schedule (Part 2.2) must be completed in full. Offer validity: 90 days from closing date.

Escalation: 8% per annum, with rental reviewed every five years.

If the bid value exceeds R10 million (VAT inclusive), MBD 5 requires submission of audited annual financial statements for the past three years (or since establishment if established within the past three years).

No bid bond, guarantee, or deposit is mentioned in the document. Payment terms are not specified beyond the monthly rental structure.

Mandatory compliance requirements:

• Central Supplier Database (CSD) registration: bidder must be registered on the CSD (supplier number MAAA...); failure renders the bid null and void.
• Tax compliance: overall tax clearance status on CSD must be "Tax Compliant"; each party in a consortium/joint venture/sub-contractor must be tax compliant.
• Company registration: CK documents and certified ID copies of directors/owners.
• Municipal accounts: statement of account for three months or valid lease agreement for both the bidding entity and its directors/owners; if unavailable, an affidavit declaring no municipal debt older than 30 days (advert says 30 days, MBD 1 checklist says 90 days — both are stated).
• B-BBEE: valid B-BBEE status level verification certificate (original/certified copy from SANAS-accredited agency, IRBA-approved auditor, or accounting officer) or sworn affidavit for EMEs to claim preference points; non-submission scores 0 points.
• Locality: proof of address of office dealing with the project (lease agreement or municipal account in bidder's name) to claim locality points; non-submission scores 0 points.
• Standard forms (all must be fully completed and signed): MBD 1, MBD 4, MBD 5, MBD 6.1, MBD 8, MBD 9.
• No bids accepted from persons in the service of the state (as defined in MSCM Regulations).
• The original bid document collected from the municipality must be submitted; if printed from the website, the original printed document must be submitted.

Contract terms are governed by the General Conditions of Contract (GCC) and any special conditions of contract. The law of the Republic of South Africa applies. The successful bidder must sign a written contract form (Schedule M: Agreement & Data Contract). The bid offer remains binding for 90 days from the closing date. Withdrawal within the validity period or failure to fulfil the contract allows the municipality to recover additional expenses, including costs of re-tendering, and to set off against monies due or guarantees provided. The bidder chooses domicilium citandi et executandi at a full address to be provided. The municipality reserves the right not to make an appointment, to accept part or the whole bid, and not to accept the lowest or only bid. Late, telephonic, faxed, and electronic bids are not accepted. Bids must be on official original forms. The municipality's Supply Chain Management Policy applies. Objection period: 14 days after award (advertised on SBDM website).

Evaluation follows the 80/20 preference points system (total 100 points): Price 80 points (VAT inclusive, standard formula); B-BBEE status level up to 10 points (Level 1=10, 2=9, 3=8, 4=6, 5=4, 6=3, 7=2, 8=1, Non-compliant=0) — requires valid B-BBEE certificate or sworn affidavit; Locality up to 10 points (within Sarah Baartman District=10, within Eastern Cape=8, within South Africa=5, outside South Africa=1) — requires proof of address of office dealing with the project. Highest total points wins; tie-break: highest specific-goal points, then functionality (if applicable), then drawing of lots. No minimum functionality threshold stated. Award to one service provider. Municipality may request clarification; response required within 48 hours. Value for money is a key consideration.