Basic Conditions of Employment Act, 1997
R 385
Financial Management of Parliament Act, 2009 (Act No. 10 of 2009)11. Contract Management and Dispute Settling |
General
| (1) |
| (a) | The Accounting Officer's decision in regulation 7(9)(c)(i) is subject to the preferred supplier entering into a written contract for all goods and services— |
| (i) | procured through a bidding process; and |
| (ii) | in accordance with the Delegation of Authority, with specific reference to— |
| (aa) | the period for delivery of the goods and services; |
| (bb) | the value of the goods and services procured; and |
| (cc) | the amounts of deposits required. |
| (b) | The Accounting Officer must ensure that a contract, including an enabling contract procured through the Supply Chain Management system, is consistent with the award and implemented in accordance with the requirements set out in the invitation for the bid. |
| (c) | If a contract period will exceed one year, an appropriate contract price adjustment formula must be specified in the bid documents where applicable. |
| (d) | A contract must provide for a dispute settling procedure. |
| (e) | If the contract period does not exceed one year, the bid must be a fixed price bid and may not be subject to a contract price adjustment. |
Contract amendments
| (2) |
| (a) | A contract for goods or services procured through the Supply Chain Management system, other than a contract procured through a competitive bidding system, may be amended by agreement between the parties, or as provided for in the contract. |
| (b) | A contract for goods or services procured through a competitive bidding process may be amended by agreement between the parties, or as provided for in the contract, provided that the amendment remains consistent with the invitation for the bid. |
| (c) | Any amendments to a contract must be in writing in accordance with the contract and signed in accordance with the Delegation of Authority. |
Contract renewal
| (3) |
| (a) | A contract may not be renewed without following the Supply Chain Management system. |
| (b) | Reasons for the renewal must be furnished, and approved by the Accounting Officer. |
| (c) | A contract may only be renewed for a period determined by the Accounting Officer from time to time but may not exceed the initial contract period. |
Contract management
| (4) |
| (a) | The Accounting Officer must establish a contract management function, with the responsibility for, amongst other things: |
| (i) | Creating and maintaining a contracts database for all active contracts held by the Parliamentary Service, setting out: |
| (aa) | the official responsible for management of the contract; |
| (bb) | the period of the contract; |
| (cc) | the deliverables and date for delivery; |
| (dd) | remedies in the event of non compliance; |
| (ee) | rand value of the contract; |
| (ff) | date or period of payment; |
| (gg) | date on which renewal notice must be given, if any; and |
| (hh) | any other information which may assist in the proper management of contracts; |
| (ii) | liaising with the officials responsible for management of contracts to ensure that— |
| (aa) | the contracts database is kept up to date; |
| (bb) | the vendor's performance is monitored and reviewed for compliance with specifications and contract conditions for particular goods or services; |
| (cc) | deadlines for delivery and payment are adhered to; and |
| (dd) | contracts are closed off and stored for safekeeping after completion; |
| (iii) | retaining copies of all contracts for safekeeping; and |
| (iv) | advising the Accounting Officer if any risk means are identified based on the statistics provided by the contracts database. |
Termination of contracts
| (5) |
| (a) | The Accounting Officer may terminate a contract— |
| (i) | in accordance with the contract where the preferred supplier is in breach of a material term or condition thereof; |
| (ii) | in accordance with these regulations, where these regulations so allow; or |
| (iii) | where it was awarded on account of false information furnished by the bidder in order to secure preference under the Preferential Procurement Policy Framework Act. |
| (b) | The process to terminate a contract must be— |
| (i) | in accordance with the terms of the contract; and |
| (ii) | preceded by consultation with the preferred supplier: Provided that this requirement— |
| (aa) | will not prevent temporary suspension of performance by either party; and |
| (bb) | will be fulfilled if the reasons for cancellation were put to the preferred provider in writing and the preferred provider did not supply a satisfactory response within such reasonable time as the notification may stipulate. |
| (c) | If an agreement has been concluded with any preferred supplier on the strength of information furnished by him or her in respect of which it is after the conclusion of such agreement proved that such information was incorrect, the Accounting Officer may, in addition to any other legal remedy he or she may have— |
| (i) | recover from the preferred supplier any costs, and any damages incurred or sustained, as the case may be, as a result of the conclusion of the agreement; or |
| (ii) | terminate the agreement and recover from the preferred supplier damages suffered by having to make less favourable arrangements thereafter. |
