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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

84. Negotiation and agreement with prospective service provider

 

 

1) After a prospective service provider has been selected, the municipality must on the basis of the bidding documents, and any addenda amendments or variations thereto that were provided to all the bidders, negotiate the final terms and conditions of the service delivery agreement with the preferred service provider and. if successful, enter into such an agreement with the selected service provider on the terms and conditions specified in the bidding documents, as modified or supplemented in the negotiations, if such modifications do not materially affect the bid in a manner which compromises the integrity of the bidding process.

 

2) If the municipality and the selected service provider fail to reach agreement within a reasonable time allowed by the municipality for negotiations, the municipality may negotiate with the next-ranked prospective service provider.

 

3) When a municipality has entered into a service delivery agreement it must-
a) make copies of the agreement available at its offices for public inspection during office hours; and
b) give notice in the media of-
i) particulars of the service that will be provided under the agreement;
ii) the name of the selected service provider; and
iii) the place where and the period for which copies of the agreement are available for public inspection.