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Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 8 : Municipal Services

Part 3 : Service delivery agreements involving competitive bidding

83. Competitive bidding

 

 

1) If a municipality decides to provide a municipal service through a service delivery agreement with a person referred to in section 80(1)(b), it must select the service provider through selection processes which-
a) are competitive, fair, transparent, equitable and cost-effective;
b) allow all prospective service providers to have equal and simultaneous access to information relevant to the bidding process;
c) minimise the possibility of fraud and corruption;
d) make the municipality accountable to the local community about progress with selecting a service provider, and the reasons for any decision in this regard; and
e) takes into account the need to promote the empowerment of small and emerging enterprises.

 

2) Subject to the provisions of the Preferential Procurement Policy Framework Act, (Act No. 5 of 2000), a municipality may determine a preference for categories of service providers in order to advance the interest of persons disadvantaged by unfair discrimination, as long as the manner in which such preference is exercised does not compromise or limit the quality, coverage, cost and developmental impact of the services.

 

3) The selection process referred to in subsection (1), must be fair, equitable transparent, cost-effective and competitive, and as may be provided for in other applicable national legislation.

 

4) In selecting a service provider a municipality must apply the criteria listed in section 78 as well as any preference for categories of service providers referred to in subsection (2) of this section.