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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)


Municipal Supply Chain Management Regulations, 2005

Chapter 2: Framework for Supply Chain Management Policies

Part 2: Acquisition management

21. Bid documentation for competitive bids


A supply chain management policy must determine the criteria to which bid documentation for a competitive bidding process must comply, and state that in addition to regulation 13 the bid documentation must—


(a) take into account—
(i) the general conditions contract;
(ii) any Treasury guidelines on bid documentation; and
(iii) the requirements of the Construction industry Development Board, in the case of a bid relating to construction, upgrading or refurbishment of buildings or infrastructure;


(b) include evaluation and adjudication criteria,  including any criteria required by other applicable legislation;


(c) compel bidders to declare any conflict interest they may have in transactionfor which the bid is submitted;


(d) if  the  value  of  the  transaction  is  expected  to  exceed million (VAT included), require bidders to furnish—
(i) if the bidder is required by law to prepare annual financial statements for auditing, their audited annual financial statements—
(aa) for the past three years; or
(bb) since their establishment if established during the past three years;
(ii) a certificate signed by the bidder certifying that the bidder has no undisputed commitments for municipal services towards a municipality or other service provider in respect of which payment is overdue for more than 30 days;
(iii) particulars of any contracts awarded to the bidder by organ of state during the past five years, including particulars of any material non-compliance or dispute concerning the execution of such contract;
(iv) a statement indicating whether any portion of the goods or services are expected to be sourced from outside the Republic, and, if so, what portion and whether any portion of payment from the municipality or municipal entity is expected to be transferred out of the Republic; and


(e) stipulate that disputes must be settled by means of mutual consultation, mediation (with or without representation), or, when unsuccessful, in a South African court of law.