REQUEST FOR PROPOSAL FOR PROVISION OF INTERNAL AUDIT SERVICES

1. OBJECTIVE The objective of this bid is to appoint a suitable independent Internal Audit Service Provider firm that can provide and maintain appropriate Internal Audit and certain consulting services to the management of the Mpumalanga Provincial Legislature (MPL) and to the Audit Committee of the Legislature.

MPL must comply with provisions of the Financial Management of Mpumalanga Provincial Legislature Act of 2010 and King III Report on Corporate Governance. The suite of services to be rendered must therefore assist MPL management to comply accordingly.

2. ROLE AND OBJECTIVES OF INTERNAL AUDIT The Internal Audit should be an independent appraisal function within MPL, which provides management with a systematic review and evaluation of the operations for determining compliance and the economy, efficiency and effectiveness of policies, procedures, practices and the overall internal control within MPL.

The objective of internal auditing is to add value by assisting the Audit Committee and Management in effectively discharging their responsibilities, including the promotion of effective internal control at reasonable costs as well as compliance with the provisions of the Financial Management of Mpumalanga Provincial Legislature Act of 2010 and King III Report on Corporate Governance.

3. ORGANISATIONAL STATUS OF INTERNAL AUDIT The Internal Audit will report to the Audit Committee of the Mpumalanga Provincial Legislature functionally and Secretary administratively and will promote and ensure:

the independence of internal audits broad audit coverage adequate consideration of audit reports the implementation of audit recommendations

Page1of43

4. SCOPE OF INTERNAL AUDIT WORK The scope of the internal audit work entails evaluating the adequacy and effectiveness of MPLs systems of internal control. This includes:

4.1 reviewing the reliability and integrity of financial and operational information and the means used to identify, measure, classify and report such information; 4.2 reviewing the systems established by management to ensure compliance with applicable policies, plans, procedures and Acts and to determine whether the organization is in compliance; 4.3 reviewing the means of safeguarding assets and verifying the existence thereof; 4.4 appraising the economy as well as the efficiency with which resources are employed and identifying opportunities to improve operating performance; 4.5 reviewing operations or programmes to ascertain whether results are consistent with established objectives and goals and whether the operations or programmes are being carried out as planned, i.e. Performance Audits 4.6 reviewing the planning, design, development, implementation and operation of major computer-based systems to determine whether: adequate controls and backup systems are incorporated in systems thorough systems testing is performed at appropriate stages system documentation is complete and accurate user needs are met

4.7 reporting to the Audit Committee and Management in writing on the scope of reviews of corporate governance and any significant findings.

5. SCOPE OF INTERNAL AUDIT SERVICES The appointed service provider will be required to: 5.1 Compile a three year risk based rolling internal audit plan for approval by the Audit Committee 5.2 Develop a detailed annual plan indicating scope for each internal audit 5.3 Discuss audit coverage with Management and the Audit Committee 5.4 Perform internal audits in compliance with the International Professional Practices Framework (IPPF). 5.5 Monitor the clearing and implementation of the Auditor Generals audit findings and recommendations.

Page2of43

5.6 Report on the findings to Management and secure comments before presenting to the Audit Committee 5.7 Attend Audit Committee meetings and provide feedback on internal audits completed, the management of risks including a regular overview of the control environment 5.8 Provide overall annual conclusion on the audited control environment for the Audit Committee 5.9 Work closely with the external auditors and other assurance providers to ensure synergy of approach, with a view to minimal duplication of effort and to obtain reliance on work performed 5.10 Perform compliance reviews with the: 5.10.1 Financial Management of Mpumalanga Provincial Legislature Act 5.10.2 King III Report. 5.10.3 Any other statutory and regulatory requirements.

6. OTHER AUDIT AND CONSULTING SERVICES The appointed service provider will from time to time be requested to perform the following additional services at contract rates: 6.1 Perform annual Information Technology (IT) audit, including IT risk assessments and the reviews of the implementation of MPLs disaster recovery and business continuity plans 6.2 Conduct annual risk assessments, preparation of risk registers and risk dashboards 6.3 Review Managements assertions on residual risk ratings against (internal) audit findings and other relevant factors 6.4 Provide risk mitigation and control advice to management on risk management in a form of a report 6.5 Conduct annual fraud, risk and security awareness workshops 6.6 Develop a negligence, fraud and corruption management framework 6.7 Develop a negligence, fraud and corruption investigation policy, strategy and methodology 6.8 Perform quarterly reviews of interim financial statements and performance reports 6.9 Perform forensic audit/investigations on request

Page3of43

7. FEES AND PAYMENT Pricing, based on hourly tariffs, will be considered in determining the suitability of the proposal regarding the services to be provided. The rates per hour of the following levels of staff should be indicated: Level of resource Engagement Partner Senior Manager Manager Assistant Manager Supervisor Senior Auditor Auditor Junior Auditor Specialist (e.g. Tax, Risk, Forensic, etc.) Total Average rate (total 9 resources) Hourly Rate (incl. Disbursements and VAT) R R R R R R R R R R R

Note: Bidders must not calculate their pricing by estimating the total hours per quarter/ annum and then multiply by the resource level hourly rate. The requirement is simply to provide the hourly rate per level of resource and then providing the average rate based on the list provided. Failure to adhere to this request will result in the bid being disqualified.

8. CONTENT OF THE BID PROPOSAL The proposal should indicate: 8.1 All relevant perceived strengths and weaknesses of the firm bidding for the services, e.g. similar previous experience, in-house skills, providing information which will assist MPL to assess its capabilities, capacity, competitive advantages, etc; 8.2 A proposed plan of action to achieve the objectives of the Internal Audit function and risk management support to Management. Such plan should cover short and medium term steps to manage the Internal Audit function and the risk management effort for MPL; 8.3 Copies of appointment letters of previous and current Internal Audit contracts awarded; 8.4 An organogram or list of partners, managers, specialists and assistants together with the curriculum vitae of the staff who will be available for the duration of the contract with MPL. In addition the team to be appointed to provide Internal Audit services to MPL should : 8.4.1 Have team members who are members of the Institute of Internal Auditors (IIA).

Page4of43

8.4.2 Appoint a team, the core of which should remain constant for the duration of the of the contract 8.4.3 Source external expertise if and where necessary, based upon the annual risk Assessment, the three year rolling risk based internal audit plan or any other relevant factor.

8.4.4 Any possible staff changes during the course of the audit must be done in consultation with MPL;

8.5 A breakdown of the hourly tariff inclusive of services rendered. Please note that expenditure incurred without the prior approval of MPL will not be reimbursed; 8.6 How the bidder proposes to provide governance assistance to MPL; 8.7 In so far as is possible, provide an overview of the methodology to be applied to the execution of the Audit function 8.8 The Service Provider must supply the following information: 8.8.1 Certification of Registration 8.8.2 Valid Tax Clearance Certificate 8.8.3 Details of equity status and BEE initiatives (As indicated on Tender Declaration Form to be attached) 8.8.4 BBBEE rating certificate issued by a DTI accredited rating agency/authority 8.8.5 Company ownership status 8.8.6 Organisational chart for the firm 9. VALIDITY OF PROPOSALS The bidder is required to confirm that it will hold its proposal valid for 90 days from the closing date of the submission of proposals, during which time it will maintain without change the personnel proposed for the service together with their proposed rates. 10. APPOINTMENT, COMMENCEMENT AND DURATION The successful bidder will be appointed for a period of between three (3) to five (5) years, commencing from the effective date of appointment. 11. PACKAGE APPROACH MPL will conclude a three (3) or five (5) years agreement with a bidder who is able to provide a comprehensive internal audit service and consulting service on risk management.

Page5of43

The successful bidder will have unlimited access to all appropriate information of MPL required to execute the Internal Audit function within the normal working hours of the Institute.

12. DESCRIPTION AND EXTENT OF WORK 12.1. Conducting of audit assignments Assignments are to be performed in accordance with the bidders internal audit procedures in compliance with the standards set by the IPPF. However, each assignment should consist of the following tasks: 12.1.1 Audit preparation (which should include the scoping document audit plan) 12.1.2 Preliminary survey 12.1.3 Review of internal controls 12.1.4 Audit testing 12.1.5 Development of findings and recommendations 12.1.6 Obtaining management responses; and 12.1.7 Reporting On request from MPL and the Audit Committee, all procedural documentation and working papers must be made available within three (3) working days, even after the expiry of the appointment. 13.2. Timing of assignments The Annual Internal Audit Coverage Plan shall be presented and agreed to by the Audit Committee at its meeting before the commencement of any work. Furthermore, the final responsibility of approving the scope and extent of the work resides with the Audit Committee. 13.3. Quality assurance reviews of the work The Internal Audit shall ensure that all work conforms to the standards for the Professional Practice of Internal Auditing (Institute of Internal Auditors). Such work shall further be subject to an external quality assurance as may be considered necessary and appropriate by the Audit Committee. 13.4. Independence and objectivity of audit staff In carrying out the work, the Internal Auditor must ensure that their staff maintains their objectivity by remaining independent of the activities they audit. Page6of43

13.5. Monitoring progress of assignments The Internal Auditor shall present a report on the progress of the internal audit work at the scheduled Audit Committee meetings, and to the Secretary of the Legislature as and when required to do so. 13.6. Report of audit results The report(s) on findings and recommendations should be sent to the Secretary of the Legislature and divisional heads responsible for implementing those recommendations (auditee) for their consideration and comments. Within ten (10) working days of sending the report(s), the internal auditors shall meet with the auditee to discuss the findings and obtain written responses to the recommendations together with implementation dates. These shall then be incorporated into the final report which must be issued to the Secretary of the Legislature. Copies of these reports must also be tabled at the Audit Committee meeting for discussion. The structure of the report is to be as follows: Introduction Audit objective and scope Background Executive summary Activity, findings, recommendations and management response (including corrective action and implementation dates) Conclusion Practical method of proceeding with recommendations

13.7. Fraud and irregularities In planning and conducting work, the bidder should seek to identify serious defects in the internal controls which might result in possible malpractices. Any such defects must be reported immediately to the Secretary of the MPL and the Audit Committee without disclosing these to any other members of the staff. This applies to instances where serious fraud and irregularity is uncovered. 13.8. Authorised delegate(s) Nothing stipulated in the task directives may be amended without the written confirmation of the Secretary of the Legislature of MPL or any person nominated by him/her.

Page7of43

14. EVALUATION CRITERIA 14.1 FUNCTIONALITY CRITERIA Criteria Service capabilities Profile of the audit team Track record Value add/ Support services Total weight 0 1 2 3 4 5 Weight 10 4 4 2 Score

20

Preferential point system criteria will only be applied to bidders who obtain a total score of 70 or more in the above-mentioned functionality criteria. Bidders who obtain a score of less than 70 will be disqualified from further evaluation process. 14.2 PREFERENTIAL POINTS SYSTEM CRITERIA Price: 90 points Historically Disadvantaged Individuals: 10 points

15. LOCAL OFFICE Bidders who do not have a fully resourced office in Mpumalanga will not be considered.

Page8of43

SBD1

INVITATIONTOBID YOUAREHEREBYINVITEDTOBIDFORREQUIREMENTSOFTHEMPUMALANGA LEGISLATURE

BIDNUMBER: RFP 2012/IA/MPL-03

CLOSINGDATE:16March2012

CLOSINGTIME:11H00.

INTERNALAUDITSERVICE

ThesuccessfulbidderwillberequiredtofillinandsignawrittenContractForm(MBD7).

BIDDOCUMENTSMAYBEPOSTEDTO: OR

MpumalangaProvincialLegislature PrivateBagX11289 NELSPRUIT 1200

DEPOSITEDINTHEBIDBOXSITUATEDAT

MpumalangaProvincialLegislature SatelliteOffice GovernmentBoulevard3A RiversidePark Nelspruit

Biddersshouldensurethatbidsaredeliveredtimelytothecorrectaddress.Ifthebidislate, itwillnotbeacceptedforconsideration. Technicalenquiries:SelloSanyane,Tel:(013)7661053 Biddocumentsenquiries:TlouMabula,Tel:(013)7661340

ALLBIDSMUSTBESUBMITTEDONTHEOFFICIALFORMS(NOTTOBERETYPED)
THIS BID IS SUBJECT TO THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHERSPECIALCONDITIONSOFCONTRACT Page9of43

THEFOLLOWINGPARTICULARSMUSTBEFURNISHED(FAILURETODOSOMAY RESULTINYOURBIDBEINGDISQUALIFIED)
NAMEOFBIDDER POSTALADDRESS .

STREETADDRESS

TELEPHONENUMBER CODENUMBER.. CELLPHONENUMBER FACSIMILENUMBER VATREGISTRATIONNUMBER HASANORIGINALTAXCLEARANCECERTIFICATEBEENATTACHED(MBD2)? YES/NO CODE.NUMBER

AREYOUTHEACCREDITEDREPRESENTATIVE INSOUTHAFRICAFORTHEGOODS/SERVICESOFFEREDBYYOU?

YES/NO (IFYESENCLOSEPROOF)

SIGNATUREOFBIDDER.. DATE.................................. CAPACITYUNDERWHICHTHISBIDISSIGNED

TOTALBIDPRICE...................TOTALNUMBEROFITEMSOFFERED...

Page10of43

SBD 2

TAX CLEARANCE CERTIFICATE REQUIREMENTS It is a condition of bid that the taxes of the successful bidder must be in order, or that satisfactory arrangements have been made with South African Revenue Service (SARS) to meet the bidders tax obligations.
1. In order to meet this requirement bidders are required to complete in full the attached form TCC 001Application for a Tax Clearance Certificate and submit it to any SARS branch office nationally. The Tax Clearance Certificate Requirements are also applicable to foreign bidders / individuals who wish to submit bids. 2. SARS will then furnish the bidder with a Tax Clearance Certificate that will be valid for a period of 1 (one) year from the date of approval. 3. The original Tax Clearance Certificate must be submitted together with the bid. Failure to submit the original and valid Tax Clearance Certificate will result in the invalidation of the bid. Certified copies of the Tax Clearance Certificate will not be acceptable. 4. In bids where Consortia / Joint Ventures / Sub-contractors are involved, each party must submit a separate Tax Clearance Certificate. 5. Copies of the TCC 001 Application for a Tax Clearance Certificate form are available from any SARS branch office nationally or on the website www.sars.gov.za.

6. Applications for the Tax Clearance Certificates may also be made via e-Filing. In order to
use this provision, taxpayers will need to register with SARS as e-Filers through the website www.sars.gov.za.

Page11of43

SBD 6.1

PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2011

Thispreferenceformmustformpartofallbidsinvited.Itcontainsgeneralinformationandservesasa claimformforpreferencepointsforBroadBasedBlackEconomicEmpowerment(BBBEE)StatusLevel ofContribution

NB:

BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011.

1.

GENERAL CONDITIONS

1.1

The following preference point systems are applicable to all bids: the 80/20 system for requirements with a Rand value of up to R1 000 000 (all applicable taxes included);and

the 90/10 system for requirements with a Rand value above R1 000 000 (all applicable taxes included).

1.2

The value of this bid is estimated to exceed R1 000 000 (all applicable taxes included) and therefore the 90/10 system shall be applicable.

1.3

Preference points for this bid shall be awarded for:

(a) (b)

Price; and B-BBEE Status Level of Contribution.

1.3.1

The maximum points for this bid are allocated as follows: POINTS

1.3.1.1 1.3.1.2

PRICE B-BBEE STATUS LEVEL OF CONTRIBUTION

90 10

Total points for Price and B-BBEE must not exceed

100

Page12of43

1.4

Failure on the part of a bidder to fill in and/or to sign this form and submit a B-BBEE Verification Certificate from a Verification Agency accredited by the South African Accreditation System (SANAS) or a Registered Auditor approved by the Independent Regulatory Board of Auditors (IRBA) or an Accounting Officer as contemplated in the Close Corporation Act (CCA) together with the bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed.

1.5.

The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser. DEFINITIONS

2.

2..1

all applicable taxes includes value-added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills development levies;

2.2

B-BBEE means broad-based black economic empowerment as defined in section 1 of the Broad -Based Black Economic Empowerment Act;

2.3

B-BBEE status level of contributor means the B-BBEE status received by a measured entity based on its overall performance using the relevant scorecard contained in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the BroadBased Black Economic Empowerment Act;

2.4

bid means a written offer in a prescribed or stipulated form in response to an invitation by an organ of state for the provision of services, works or goods, through price quotations, advertised competitive bidding processes or proposals;

2.5

Broad-Based Black Economic Empowerment Act means the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003);

2.6

comparative price means the price after the factors of a non-firm price and all unconditional discounts that can be utilized have been taken into consideration;

2.7

consortium or joint venture means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract;

Page13of43

2.8

contract means the agreement that results from the acceptance of a bid by an organ of state;

2.9

EME means any enterprise with annual total revenue of R5 million or less,

2.10

Firm price means the price that is only subject to adjustments in accordance with the actual increase or decrease resulting from the change, imposition, or abolition of customs or excise duty and any other duty, levy, or tax, which, in terms of the law or regulation, is binding on the contractor and demonstrably has an influence on the price of any supplies, or the rendering costs of any service, for the execution of the contract;

2.11

functionality means the measurement according to predetermined norms, as set out in the bid documents, of a service or commodity that is designed to be practical and useful, working or operating, taking into account, among other factors, the quality, reliability, viability and durability of a service and the technical capacity and ability of a bidder;

2.12

non-firm prices means all prices other than firm prices;

2.13

person includes a juristic person;

2.14

rand value means the total estimated value of a contract in South African currency, calculated at the time of bid invitations, and includes all applicable taxes and excise duties; sub-contract means the primary contractors assigning, leasing, making out work to, or employing, another person to support such primary contractor in the execution of part of a project in terms of the contract;

2.15

2.16

total revenue bears the same meaning assigned to this expression in the Codes of Good Practice on Black Economic Empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act and promulgated in the Government Gazette on 9 February 2007;

2.17

trust means the arrangement through which the property of one person is made over or bequeathed to a trustee to administer such property for the benefit of another person; and

2.18

trustee means any person, including the founder of a trust, to whom property is bequeathed in order for such property to be administered for the benefit of another person.

3.

ADJUDICATION USING A POINT SYSTEM

Page14of43

3.1 3.2

The bidder obtaining the highest number of total points will be awarded the contract. Preference points shall be calculated after prices have been brought to a comparative basis taking into account all factors of non-firm prices and all unconditional discounts;. 3.3 Points scored must be rounded off to the nearest 2 decimal places.

3.4 In the event that two or more bids have scored equal total points, the successful bid must be the one scoring the highest number of preference points for B-BBEE.

3.5 However, when functionality is part of the evaluation process and two or more bids have scored equal points including equal preference points for B-BBEE, the successful bid must be the one scoring the highest score for functionality.

3.6 Should two or more bids be equal in all respects, the award shall be decided by the drawing of lots. 4. POINTS AWARDED FOR PRICE

4.1

THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS

A maximum of 80 or 90 points is allocated for price on the following basis:

80/20

or

90/10

Pt P min Ps = 801 P min

Where

or

Pt P min Ps = 901 P min

Ps

Points scored for comparative price of bid under consideration

Pt

Comparative price of bid under consideration

Pmin

Comparative price of lowest acceptable bid

Page15of43

5.

Points awarded for B-BBEE Status Level of Contribution

5.1

In terms of Regulation 5 (2) and 6 (2) of the Preferential Procurement Regulations, preference points must be awarded to a bidder for attaining the B-BBEE status level of contribution in accordance with the table below:

B-BBEE Status Level of Contributor 1 2 3 4 5 6 7 8 Non-compliant contributor

Number of points (90/10 system) 10 9 8 5 4 3 2 1 0

Number of points (80/20 system) 20 18 16 12 8 6 4 2 0

5.2

Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an Accounting Officer as contemplated in the CCA or a Verification Agency accredited by SANAS or a Registered Auditor. Registered auditors do not need to meet the prerequisite for IRBAs

approval for the purpose of conducting verification and issuing EMEs with B-BBEE Status Level Certificates.
5.3 Bidders other than EMEs must submit their original and valid B-BBEE status level verification certificate or a certified copy thereof, substantiating their B-BBEE rating issued by a Registered Auditor approved by IRBA or a Verification Agency accredited by SANAS. A trust, consortium or joint venture, will qualify for points for their B-BBEE status level as a legal entity, provided that the entity submits their B-BBEE status level certificate.

5.4

5.5

A trust, consortium or joint venture will qualify for points for their B-BBEE status level as an unincorporated entity, provided that the entity submits their consolidated B-BBEE scorecard as if they were a group structure and that such a consolidated B-BBEE scorecard is prepared for every separate bid.

Page16of43

5.6

Tertiary institutions and public entities will be required to submit their B-BBEE status level certificates in terms of the specialized scorecard contained in the B-BBEE Codes of Good Practice.

5.7

A person will not be awarded points for B-BBEE status level if it is indicated in the bid documents that such a bidder intends sub-contracting more than 25% of the value of the contract to any other enterprise that does not qualify for at least the points that such a bidder qualifies for, unless the intended sub-contractor is an EME that has the capability and ability to execute the subcontract.

5.8

A person awarded a contract may not sub-contract more than 25% of the value of the contract to any other enterprise that does not have an equal or higher B-BBEE status level than the person concerned, unless the contract is sub-contracted to an EME that has the capability and ability to execute the sub-contract.

6.

BID DECLARATION

6.1

Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the following: B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.3.1.2 AND 5.1

7.

7.1

B-BBEE Status Level of Contribution ........................

(Maximum of 10 points)

(Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 5.1 and must be substantiated by means of a BBBEE certificate issued by a Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or an AccountingOfficerascontemplatedintheCCA).

SUB-CONTRACTING

8.1

Will any portion of the contract be sub-contracted?

applicable)

YES / NO (delete which is not

8.1.1 Ifyes,indicate: (i) whatpercentageofthecontractwillbesubcontracted?.............% (ii) thenameofthesubcontractor? ..

(iii) theBBBEEstatuslevelofthesubcontractor?.................................... (iv) whetherthesubcontractorisanEME? YES/NO(deletewhichisnotapplicable)

Page17of43

DECLARATION WITH REGARD TO COMPANY/FIRM

Name of company/firm : ..............................................................................................

9.1

9.2

VAT registration number

: ...........................................................................................

9.3

Company registration number

9.4

TYPE OF COMPANY/ FIRM

Partnership/Joint Venture / Consortium One person business/sole propriety Close corporation Company (Pty) Limited [TICK APPLICABLE BOX]

9.5

DESCRIBE PRINCIPAL BUSINESS ACTIVITIES .. ..................................................................................................................................... ................................................................................................................................ .. .................................................................................................................................

9.6

COMPANY CLASSIFICATION

Manufacturer Supplier Professional service provider Other service providers, e.g. transporter, etc. [TICK APPLICABLE BOX]

Page18of43

9.7

Total number of years the company/firm has been in business?

9.8

I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on the B-BBE status level of contribution indicated in paragraph 7 of the foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we acknowledge that: (i) (ii) The information furnished is true and correct; The preference points claimed are in accordance with the General Conditions as indicated in paragraph 1 of this form. In the event of a contract being awarded as a result of points claimed as shown in paragraph 7, the contractor may be required to furnish documentary proof to the satisfaction of the purchaser that the claims are correct; If the B-BBEE status level of contribution has been claimed or obtained on a fraudulent basis or any of the conditions of contract have not been fulfilled, the purchaser may, in addition to any other remedy it may have (a) (b) disqualify the person from the bidding process; recover costs, losses or damages it has incurred or suffered as a result of that persons conduct; cancel the contract and claim any damages which it has suffered as a result of having to make less favourable arrangements due to such cancellation; restrict the bidder or contractor, its shareholders and directors, or only the shareholders and directors who acted on a fraudulent basis, from obtaining business from any organ of state for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been applied; and

(iii)

(iv)

(c)

(d)

(e)

forward the matter for criminal prosecution

WITNESSES:

1.

............................................................. SIGNATURE(S) OF BIDDER(S) DATE: .....

2.

ADDRESS: ....... ............................................ .............................................

Page19of43

SBD4 DECLARATIONOFINTEREST 1. Any legal person, including persons employed by the state*, or persons having akinshipwithpersonsemployedbythestate,includingabloodrelationship,maymakeanoffer or offers in terms of this invitation to bid (includes a price quotation, advertised competitive bid, limited bid or proposal). In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the state, or to persons connected with or related to them, it is required that the bidder or his/her authorised representative declare his/herpositioninrelationto theevaluating/adjudicatingauthorityand/ortakean oath declaringhis/herinterest,where thebidderisemployedbythestate;and/or the legal person on whose behalf the bidding document is signed, has a relationship with persons/a person who are/is involved in the evaluation and or adjudication of the bid(s), or whereitisknownthatsucharelationshipexistsbetweenthepersonorpersonsfororonwhose behalf the declarant acts and persons who are involved with the evaluation and or adjudication ofthebid. In order to give effect to the above, the following questionnaire must be completed and submittedwiththebid. FullNameofbidderorhisorherrepresentative:. IdentityNumber:

2.

2.1 2.2 2.3 2.4 2.5 2.6

PositionoccupiedintheCompany(director,shareholderetc):

CompanyRegistrationNumber:...

TaxReferenceNumber:.

VATRegistrationNumber:.... *Statemeans (a)anynationalorprovincialdepartment,nationalorprovincialpublicentityor constitutionalinstitutionwithinthemeaningofthePublicFinanceManagementAct,1999 (ActNo.1of1999); (b) anymunicipalityormunicipalentity; (c) provinciallegislature; (d) nationalAssemblyorthenationalCouncilofprovinces;or (e) Parliament.

Page20of43

2.7 2.7.1

Areyouoranypersonconnectedwiththebidder presentlyemployedbythestate? Ifso,furnishthefollowingparticulars:

YES/NO

Nameofperson/director/shareholder/member:.... Nameofstateinstitutiontowhichthepersonisconnected: Positionoccupiedinthestateinstitution: Anyotherparticulars:

. 2.8 Didyouoryourspouse,oranyofthecompanysdirectors/ YES/NO shareholders/membersortheirspousesconductbusiness withthestateintheprevioustwelvemonths? Ifso,furnishparticulars: .. .. ... 2.9 Doyou,oranypersonconnectedwiththebidder,haveanyrelationship(family,friend,other) with a person employed by the state and who may be involved with the evaluation and or adjudicationofthisbid? Ifso,furnishparticulars. 2.10 Areyou,oranypersonconnectedwiththebidder,YES/NO

2.8.1

2.9.1 2.10.1

awareofanyrelationship(family,friend,other)between thebidderandanypersonemployedbythestatewho maybeinvolvedwiththeevaluationandoradjudicationofthisbid? Ifso,furnishparticulars. .................................... ................................. Page21of43

2.11

Doyouoranyofthedirectors/shareholders/membersof thecompanyhaveanyinterestinanyotherrelatedcompanies whetherornottheyarebiddingforthiscontract?

YES/NO

2.11.1 Ifso,furnishparticulars:

DECLARATION
I,THEUNDERSIGNED(NAME) CERTIFYTHATTHEINFORMATIONFURNISHEDINPARAGRAPHS2.1TO2.11.1ABOVEISCORRECT. IACCEPTTHATTHESTATEMAYACTAGAINSTMEINTERMSOFPARAGRAPH23OFTHEGENERAL CONDITIONSOFCONTRACTSHOULDTHISDECLARATIONPROVETOBEFALSE. .. . Position Nameofbidder Signature .. Date

Page22of43

 SBD 7.1

CONTRACT FORM - PURCHASE OF GOODS/WORKS

THIS FORM MUST BE FILLED IN DUPLICATE BY BOTH THE SUCCESSFUL BIDDER (PART 1) AND THE PURCHASER (PART 2). BOTH FORMS MUST BE SIGNED IN THE ORIGINAL SO THAT THE SUCCESSFUL BIDDER AND THE PURCHASER WOULD BE IN POSSESSION OF ORIGINALLY SIGNED CONTRACTS FOR THEIR RESPECTIVE RECORDS.

PART 1 (TO BE FILLED IN BY THE BIDDER) 1. I hereby undertake to supply all or any of the goods and/or works described in the attached bidding documents to (name of institution)... in accordance with the requirements and specifications stipulated in bid number..........at the price/s quoted. My offer/s remain binding upon me and open for acceptance by the purchaser during the validity period indicated and calculated from the closing time of bid.

2.

The following documents shall be deemed to form and be read and construed as part of this agreement:

(i)

Bidding documents,

Invitation to bid; Tax clearance certificate; Pricing schedule(s); Technical Specification(s); Preference claims for Broad Based Black Economic Empowerment Status Level of Contribution in terms of the Preferential Procurement Regulations 2011;

(ii) (iii)

Declaration of interest; Declaration of bidders past SCM practices; Certificate of Independent Bid Determination Special Conditions of Contract;

General Conditions of Contract; and Other (specify)

Page23of43

3.

I confirm that I have satisfied myself as to the correctness and validity of my bid; that the price(s) and rate(s) quoted cover all the goods and/or works specified in the bidding documents; that the price(s) and rate(s) cover all my obligations and I accept that any mistakes regarding price(s) and rate(s) and calculations will be at my own risk.

4.

I accept full responsibility for the proper execution and fulfilment of all obligations and conditions devolving on me under this agreement as the principal liable for the due fulfilment of this contract.

5.

I declare that I have no participation in any collusive practices with any bidder or any other person regarding this or any other bid. I confirm that I am duly authorised to sign this contract. NAME (PRINT) . WITNESSES CAPACITY . 1

6.

...

2.

SIGNATURE

DATE:

NAME OF FIRM

DATE

..

Page24of43

PART 2 (TO BE FILLED IN BY THE PURCHASER)

1.

I. in my capacity as.....accept your bid under reference number .dated..for the supply of goods/works indicated hereunder and/or further specified in the annexure(s).

2.

An official order indicating delivery instructions is forthcoming.

3.

I undertake to make payment for the goods/works delivered in accordance with the terms and conditions of the contract, within 30 (thirty) days after receipt of an invoice accompanied by the delivery note. PRICE (ALL APPLICABLE TAXES INCLUDED) B-BBEE STATUS LEVEL OF CONTRIBUTION MINIMUM THRESHOLD FOR LOCAL PRODUCTION AND CONTENT (if applicable)

ITEM NO.

BRAND

DELIVERY PERIOD

4.

I confirm that I am duly authorised to sign this contract. SIGNED AT ON..

NAME (PRINT)

SIGNATURE

..

WITNESSES 1.

OFFICIALDATESTAMP Page25of43

SBD 9

2.

DATE .

SBD 9

CERTIFICATE OF INDEPENDENT BID DETERMINATION

1 2 This Standard Bidding Document (SBD) must form part of all bids invited. Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement between, or concerted practice by, firms, or a decision by an association of firms, if it is between parties in a horizontal relationship and if it involves collusive bidding (or bid rigging). Collusive bidding is a pe se prohibition meaning that it cannot be justified under any grounds. 3 Treasury Regulation 16A9 prescribes that accounting officers and accounting authorities must take all reasonable steps to prevent abuse of the supply chain management system and authorizes accounting officers and accounting authorities to: a. disregard the bid of any bidder if that bidder, or any of its directors have abused the institutions supply chain management system and or committed fraud or any other improper conduct in relation to such system. cancel a contract awarded to a supplier of goods and services if the supplier committed any corrupt or fraudulent act during the bidding process or the execution of that contract.

b.

This SBD serves as a certificate of declaration that would be used by institutions to ensure that, when bids are considered, reasonable steps are taken to prevent any form of bid-rigging.

In order to give effect to the above, the attached Certificate of Bid Determination (SBD 9) must be completed and submitted with the bid:

Includes price quotations, advertised competitive bids, limited bids and proposals. Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete.

Page26of43

CERTIFICATE OF INDEPENDENT BID DETERMINATION

I, the undersigned, in submitting the accompanying bid:

____________________________________________________________________
(Bid Number and Description)

in response to the invitation for the bid made by:

____________________________________________________________________
(Name of Institution)

do hereby make the following statements that I certify to be true and complete in every respect:

I certify, on behalf of:

_____________________________________________________that:
(Name of Bidder) 1. I have read and I understand the contents of this Certificate; 2. I understand that the accompanying bid will be disqualified if this Certificate is found not to be true and complete in every respect; 3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying bid, on behalf of the bidder; 4. Each person whose signature appears on the accompanying bid has been authorized by the bidder to determine the terms of, and to sign the bid, on behalf of the bidder; 5. For the purposes of this Certificate and the accompanying bid, I understand that the word competitor shall include any individual or organization, other than the bidder, whether or not affiliated with the bidder, who: (a) (b) has been requested to submit a bid in response to this bid invitation; could potentially submit a bid in response to this bid invitation, based on their qualifications, abilities or experience; and

Page27of43

(c)

provides the same goods and services as the bidder and/or is in the same line of business as the bidder

6. The bidder has arrived at the accompanying bid independently from, and without consultation, communication, agreement or arrangement with any competitor. However communication between partners in a joint venture or consortium will not be construed as collusive bidding. 7. In particular, without limiting the generality of paragraphs 6 above, there has been no consultation, communication, agreement or arrangement with any competitor regarding: (a) (b) (c) (d) (e) (f) prices; geographical area where product or service will be rendered (market allocation) methods, factors or formulas used to calculate prices; the intention or decision to submit or not to submit, a bid; the submission of a bid which does not meet the specifications and conditions of the bid; or bidding with the intention not to win the bid.

8. In addition, there have been no consultations, communications, agreements or arrangements with any competitor regarding the quality, quantity, specifications and conditions or delivery particulars of the products or services to which this bid invitation relates. 9. The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly or indirectly, to any competitor, prior to the date and time of the official bid opening or of the awarding of the contract.

Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract.

10. I am aware that, in addition and without prejudice to any other remedy provided to combat any restrictive practices related to bids and contracts, bids that are suspicious will be reported to the Competition Commission for investigation and possible imposition of administrative penalties in terms of section 59 of the Competition Act No 89 of 1998 and or may be reported to the National Prosecuting Authority (NPA) for criminal Page28of43

investigation and or may be restricted from conducting business with the public sector for a period not exceeding ten (10) years in terms of the Prevention and Combating of Corrupt Activities Act No 12 of 2004 or any other applicable legislation.

.................................................. Signature

.. Date

........................................................ Position

. Name of Bidder

Page29of43

MPUMALANGALEGISLATUREPROCUREMENT GENERALCONDITIONSOFCONTRACT
NOTES Thepurposeofthisdocumentisto: (i) (ii) Inthisdocumentwordsinthesingularalsomeaninthepluralandviceversaandwordsinthe masculinealsomeaninthefeminineandneuter. SpecialConditionsofContract(SCC)relevanttoaspecificbidshouldbecompiled separatelyforeverybid(ifapplicable)andwillsupplementtheGeneralConditionsof Contract.Wheneverthereisaconflict,theprovisionsintheSCCshallprevail. TheGeneralConditionsofContractwillformpartofallbiddocumentsandmaynotbe amended. Toensurethatclientsbecomefamiliarwithregardtotherightsandobligationsofall partiesinvolvedindoingbusinesswithLegislature. DrawspecialattentiontocertaingeneralconditionsapplicabletoLegislaturebids, contractsandorders;and

Page30of43

TABLEOFCLAUSES 1.Definitions 2.Application 3.General 4.Standards 5.Useofcontractdocumentsandinformation;inspection 6.Patentrights 7.Performancesecurity 8.Inspections,testsandanalysis 9.Packing 10.Deliveryanddocuments 11.Insurance 12.Transportation 13.Incidentalservices 14.Spareparts 15.Warranty 16.Payment 17.Prices 18.Contractamendments 19.Assignment 20.Subcontracts 21.Delaysinthesuppliersperformance 22.Penalties 23.Terminationfordefault 24.Dumpingandcountervailingduties 25.ForceMajeure 26.Terminationforinsolvency 27.Settlementofdisputes 28.Limitationofliability 29.Governinglanguage 30.Applicablelaw 31.Notices 32.Taxesandduties 33.NationalIndustrialParticipationProgramme(NIPP) Page31of43

GeneralConditionsofContract
1.Definitions 1. 1.1 1.2 Contractmeansthewrittenagreemententeredintobetweenthe purchaserandthesupplier,asrecordedinthecontractformsignedby theparties,includingallattachmentsandappendicestheretoandall documentsincorporatedbyreferencetherein. 1.3 Contractpricemeansthepricepayabletothesupplierunderthe contractforthefullandproperperformanceofhiscontractual obligations. 1.4 Corruptpracticemeanstheoffering,giving,receiving,orsolicitingof anythingofvaluetoinfluencetheactionofapublicofficialinthe procurementprocessorincontractexecution. 1.5 "Countervailingduties"areimposedincaseswhereanenterprise abroadissubsidizedbyitsLegislatureandencouragedtomarketits productsinternationally. 1.6 Countryoforiginmeanstheplacewherethegoodsweremined, grownorproducedorfromwhichtheservicesaresupplied.Goodsare producedwhen,throughmanufacturing,processingorsubstantialand majorassemblyofcomponents,acommerciallyrecognizednew productresultsthatissubstantiallydifferentinbasiccharacteristicsor inpurposeorutilityfromitscomponents. 1.7 1.8 1.9 1.10 Deliveryintoconsigneesstoreortohissitemeansdeliveredand unloadedinthespecifiedstoreordepotoronthespecifiedsitein compliancewiththeconditionsofthecontractororder,the supplierbearingallrisksandchargesinvolveduntilthesuppliesare sodeliveredandavalidreceiptisobtained. 1.11 "Dumping"occurswhenaprivateenterpriseabroadmarketitsgoodson owninitiativeintheRSAatlowerpricesthanthatofthecountryof originandwhichhavethepotentialtoharmthelocalindustriesinthe RSA. 1.12 Forcemajeuremeansaneventbeyondthecontrolofthesupplier andnotinvolvingthesuppliersfaultornegligenceandnotforeseeable. Page32of43

Thefollowingtermsshallbeinterpretedasindicated: Closingtimemeansthedateandhourspecifiedinthebidding documentsforthereceiptofbids.

Daymeanscalendarday. Deliverymeansdeliveryincomplianceoftheconditionsofthe contractororder. Deliveryexstockmeansimmediatedeliverydirectlyfromstock actuallyonhand.

Sucheventsmayinclude,butisnotrestrictedto,actsofthepurchaser initssovereigncapacity,warsorrevolutions,fires,floods,epidemics, quarantinerestrictionsandfreightembargoes. 1.13 Fraudulentpracticemeansamisrepresentationoffactsinorderto influenceaprocurementprocessortheexecutionofacontracttothe detrimentofanybidder,andincludescollusivepracticeamongbidders (priortoorafterbidsubmission)designedtoestablishbidpricesat artificialnoncompetitivelevelsandtodeprivethebidderofthe benefitsoffreeandopencompetition. GCCmeanstheGeneralConditionsofContract. Goodsmeansalloftheequipment,machinery,and/orother materialsthatthesupplierisrequiredtosupplytothepurchaserunder thecontract. Importedcontentmeansthatportionofthebiddingpricerepresented bythecostofcomponents,partsormaterialswhichhavebeenorarestill tobeimported(whetherbythesupplierorhissubcontractors)andwhich costsareinclusiveofthecostsabroad,plusfreightandotherdirect importationcostssuchaslandingcosts,dockdues,importduty,salesduty orothersimilartaxordutyattheSouthAfricanplaceofentryaswellas transportationandhandlingchargestothefactoryintheRepublicwhere thesuppliescoveredbythebidwillbemanufactured. Localcontentmeansthatportionofthebiddingpricewhichisnot includedintheimportedcontentprovidedthatlocalmanufacturedoes takeplace. Manufacturemeanstheproductionofproductsinafactoryusing labour,materials,componentsandmachineryandincludesother relatedvalueaddingactivities. Ordermeansanofficialwrittenorderissuedforthesupplyofgoods orworksortherenderingofaservice. Projectsite,whereapplicable,meanstheplaceindicatedinbidding documents. Purchasermeanstheorganizationpurchasingthegoods. RepublicmeanstheRepublicofSouthAfrica. SCCmeanstheSpecialConditionsofContract. Servicesmeansthosefunctionalservicesancillarytothesupplyofthe goods,suchastransportationandanyotherincidentalservices,suchas installation,commissioning,provisionoftechnicalassistance,training, catering,gardening,security,maintenanceandothersuchobligations ofthesuppliercoveredunderthecontract.

1.14 1.15

1.16

1.17

1.18

1.19 1.20 1.21 1.22 1.23 1.24

Page33of43

1.25 2.1

Writtenorinwritingmeanshandwrittenininkoranyformof electronicormechanicalwriting. Thesegeneralconditionsareapplicabletoallbids,contractsandorders includingbidsforfunctionalandprofessionalservices,sales,hiring, lettingandthegrantingoracquiringofrights,butexcludingimmovable property,unlessotherwiseindicatedinthebiddingdocuments. Whereapplicable,specialconditionsofcontractarealsolaiddownto coverspecificsupplies,servicesorworks. Wheresuchspecialconditionsofcontractareinconflictwiththese generalconditions,thespecialconditionsshallapply. Unlessotherwiseindicatedinthebiddingdocuments,thepurchaser shallnotbeliableforanyexpenseincurredinthepreparationand submissionofabid.Whereapplicableanonrefundablefeefor documentsmaybecharged. Thegoodssuppliedshallconformtothestandardsmentionedinthe biddingdocumentsandspecifications. Thesuppliershallnot,withoutthepurchaserspriorwrittenconsent, disclosethecontract,oranyprovisionthereof,oranyspecification, plan,drawing,pattern,sample,orinformationfurnishedbyoron behalfofthepurchaserinconnectiontherewith,toanypersonother thanapersonemployedbythesupplierintheperformanceofthe contract.Disclosuretoanysuchemployedpersonshallbemadein confidenceandshallextendonlysofarasmaybenecessaryfor purposesofsuchperformance. Thesuppliershallnot,withoutthepurchaserspriorwrittenconsent, makeuseofanydocumentorinformationmentionedinGCCclause5.1 exceptforpurposesofperformingthecontract. Anydocument,otherthanthecontractitselfmentionedinGCCclause 5.1shallremainthepropertyofthepurchaserandshallbereturned(all copies)tothepurchaseroncompletionofthesuppliersperformance underthecontractifsorequiredbythepurchaser. Thesuppliershallpermitthepurchasertoinspectthesuppliersrecord relatingtotheperformanceofthesupplierandtohavethemaudited byauditorsappointedbythepurchaser,ifsorequiredbythepurchaser. Thesuppliershallindemnifythepurchaseragainstallthirdpartyclaims ofinfringementofpatent,trademark,orindustrialdesignrightsarising fromuseofthegoodsoranypartthereofbythepurchaser. Withinthirty(30)daysofreceiptofthenotificationofcontractaward, thesuccessfulbiddershallfurnishtothepurchasertheperformance securityoftheamountspecifiedinSCC.

2.Application

2.2 2.3 3.1

3.General

4.Standards

4.1

5.Useof 5.1 contract documents and information; inspection.

5.2

5.3

5.4

6.Patentrights

6.1

7.Performance Security

7.1

Page34of43

7.2

Theproceedsoftheperformancesecurityshallbepayabletothe purchaseascompensationforanylossresultingfromthesuppliers failuretocompletehisobligationsunderthecontract. Theperformancesecurityshallbedenominatedinthecurrencyofthe contract,orinafreelyconvertiblecurrencyacceptabletothepurchaser andshallbeinoneofthefollowingforms: (a) abankguaranteeoranirrevocableletterofcreditissuedbya reputablebanklocatedinthepurchaserscountryorabroad, acceptabletothepurchaser,intheformprovidedinthe biddingdocumentsoranotherformacceptabletothe purchaser;or (b) acashiersorcertifiedcheque Theperformancesecuritywillbedischargedbythepurchaserand returnedtothesuppliernotlaterthanthirty(30)daysfollowingthe dateofcompletionofthesuppliersperformanceobligationsunderthe contract,includinganywarrantyobligations,unlessotherwisespecified inSCC. Allprebiddingtestingwillbefortheaccountofthebidder. Ifitisabidconditionthatsuppliestobeproducedorservicestobe renderedshouldatanystageduringproductionorexecutionoron completionbesubjecttoinspection,thepremisesofthebidderor contractorshallbeopen,atallreasonablehours,forinspectionbya representativeoftheLegislatureoranorganizationactingonbehalfof theLegislature. Iftherearenoinspectionrequirementsindicatedinthebidding documentsandnomentionismadeinthecontract,butduringthe contractperioditisdecidedthatinspectionsshallbecarriedout,the purchasershallitselfmakethenecessaryarrangements,including paymentarrangementswiththetestingauthorityconcerned. Iftheinspections,testsandanalysesreferredtoinclauses8.2and8.3 showthesuppliestobeinaccordancewiththecontractrequirements, thecostoftheinspections,testsandanalysesshallbedefrayedbythe purchaser. Wherethesuppliesorservicesreferredtoinclauses8.2and8.3donot complywiththecontractrequirements,irrespectiveofwhethersuch suppliesorservicesareacceptedornot,thecostinconnectionwith theseinspections,testsoranalysesshallbedefrayedbythesupplier. Suppliesandserviceswhicharereferredtoinclauses8.2and8.3and whichdonotcomplywiththecontractrequirementsmayberejected. Anycontractsuppliesmayonorafterdeliverybeinspected,testedor analyzedandmayberejectediffoundnottocomplywiththe requirementsofthecontract.Suchrejectedsuppliesshallbeheldatthe costandriskofthesupplierwhoshall,whencalledupon,removethem immediatelyathisowncostandforthwithsubstitutethemwith Page35of43

7.3

7.4

8.Inspections, testsand analyses

8.1 8.2

8.3

8.4

8.5

8.6 8.7

8.8

supplieswhichdocomplywiththerequirementsofthecontract.Failing suchremovaltherejectedsuppliesshallbereturnedatthesuppliers costandrisk.Shouldthesupplierfailtoprovidethesubstitutesupplies forthwith,thepurchasermay,withoutgivingthesupplierfurther opportunitytosubstitutetherejectedsupplies,purchasesuchsupplies asmaybenecessaryattheexpenseofthesupplier. Theprovisionsofclauses8.4to8.7shallnotprejudicetherightofthe purchasertocancelthecontractonaccountofabreachofthe conditionsthereof,ortoactintermsofClause23ofGCC. Thesuppliershallprovidesuchpackingofthegoodsasisrequiredto preventtheirdamageordeteriorationduringtransittotheirfinal destination,asindicatedinthecontract.Thepackingshallbesufficient towithstand,withoutlimitation,roughhandlingduringtransitand exposuretoextremetemperatures,saltandprecipitationduring transit,andopenstorage.Packing,casesizeandweightsshalltakeinto consideration,whereappropriate,theremotenessofthegoodsfinal destinationandtheabsenceofheavyhandlingfacilitiesatallpointsin transit. Thepacking,marking,anddocumentationwithinandoutsidethe packagesshallcomplystrictlywithsuchspecialrequirementsasshallbe expresslyprovidedforinthecontract,includingadditional requirements,ifany,specifiedinSCC,andinanysubsequent instructionsorderedbythepurchaser. Deliveryofthegoodsshallbemadebythesupplierinaccordancewith thetermsspecifiedinthecontract.Thedetailsofshippingand/orother documentstobefurnishedbythesupplierarespecifiedinSCC. DocumentstobesubmittedbythesupplierarespecifiedinSCC. Thegoodssuppliedunderthecontractshallbefullyinsuredinafreely convertiblecurrencyagainstlossordamageincidentaltomanufacture oracquisition,transportation,storageanddeliveryinthemanner specifiedintheSCC. Shouldapriceotherthananallinclusivedeliveredpriceberequired, thisshallbespecifiedintheSCC. Thesuppliermayberequiredtoprovideanyorallofthefollowing services,includingadditionalservices,ifany,specifiedinSCC:services, includingadditionalservices,ifany,specifiedinSCC: (a) (b) (c) (d) performanceorsupervisionofonsiteassemblyand/or commissioningofthesuppliedgoods; furnishingoftoolsrequiredforassemblyand/ormaintenance ofthesuppliedgoods; furnishingofadetailedoperationsandmaintenancemanualfor eachappropriateunitofthesuppliedgoods; performanceorsupervisionormaintenanceand/orrepairof thesuppliedgoods,foraperiodoftimeagreedbytheparties, Page36of43

9.Packing

9.1

9.2

10.Delivery anddocuments

10.1

11.Insurance

10.2 11.1

12.Transportation 13.Incidental Services

12.1

13.1

13.2

providedthatthisserviceshallnotrelievethesupplierofany warrantyobligationsunderthiscontract;and (e) trainingofthepurchaserspersonnel,atthesuppliersplant and/oronsite,inassembly,startup,operation, maintenance,and/orrepairofthesuppliedgoods. Priceschargedbythesupplierforincidentalservices,ifnotincludedin thecontractpriceforthegoods,shallbeagreeduponinadvancebythe partiesandshallnotexceedtheprevailingrateschargedtoother partiesbythesupplierforsimilarservices. AsspecifiedinSCC,thesuppliermayberequiredtoprovideanyorallof thefollowingmaterials,notifications,andinformationpertainingto sparepartsmanufacturedordistributedbythesupplier: (a) suchsparepartsasthepurchasermayelecttopurchasefromthe supplier,providedthatthiselectionshallnotrelievethesupplierof anywarrantyobligationsunderthecontract;and (b) intheeventofterminationofproductionofthespareparts: (i) Advancenotificationtothepurchaserofthepending termination,insufficienttimetopermitthepurchaser toprocureneededrequirements;and (ii) followingsuchtermination,furnishingatnocosttothe purchaser,theblueprints,drawings,andspecifications ofthespareparts,ifrequested. Thesupplierwarrantsthatthegoodssuppliedunderthecontractare new,unused,ofthemostrecentorcurrentmodels,andthatthey incorporateallrecentimprovementsindesignandmaterialsunless providedotherwiseinthecontract.Thesupplierfurtherwarrantsthat allgoodssuppliedunderthiscontractshallhavenodefect,arisingfrom design,materials,orworkmanship(exceptwhenthedesignand/or materialisrequiredbythepurchasersspecifications)orfromanyactor omissionofthesupplier,thatmaydevelopundernormaluseofthe suppliedgoodsintheconditionsprevailinginthecountryoffinal destination. Thiswarrantyshallremainvalidfortwelve(12)monthsafterthegoods, oranyportionthereofasthecasemaybe,havebeendeliveredtoand acceptedatthefinaldestinationindicatedinthecontract,orfor eighteen(18)monthsafterthedateofshipmentfromtheportorplace ofloadinginthesourcecountry,whicheverperiodconcludesearlier, unlessspecifiedotherwiseinSCC. Thepurchasershallpromptlynotifythesupplierinwritingofanyclaims arisingunderthiswarranty.

14.Spareparts

14.1

15.Warranty

15.1

15.2

15.3

Page37of43

15.4

Uponreceiptofsuchnotice,thesuppliershall,withintheperiod specifiedinSCCandwithallreasonablespeed,repairorreplacethe defectivegoodsorpartsthereof,withoutcoststothepurchaser. Ifthesupplier,havingbeennotified,failstoremedythedefect(s)within theperiodspecifiedinSCC,thepurchasermayproceedtotakesuch remedialactionasmaybenecessary,atthesuppliersriskandexpense andwithoutprejudicetoanyotherrightswhichthepurchasermay haveagainstthesupplierunderthecontract. Themethodandconditionsofpaymenttobemadetothesupplier underthiscontractshallbespecifiedinSCC. Thesuppliershallfurnishthepurchaserwithaninvoiceaccompaniedby acopyofthedeliverynoteanduponfulfillmentofotherobligations stipulatedinthecontract. Paymentsshallbemadepromptlybythepurchaser,butinnocaselater thanthirty(30)daysaftersubmissionofaninvoiceorclaimbythe supplier,providedthereisnodisputes. PaymentwillbemadeinRandunlessotherwisestipulatedinSCC. Priceschargedbythesupplierforgoodsdeliveredandservices performedunderthecontractshallnotvaryfromthepricesquotedby thesupplierinhisbid,withtheexceptionofanypriceadjustments authorizedinSCCorinthepurchasersrequestforbidvalidity extension,asthecasemaybe. Novariationinormodificationofthetermsofthecontractshallbe madeexceptbywrittenamendmentsignedbythepartiesconcerned. Thesuppliershallnotassign,inwholeorinpart,itsobligationsto performunderthecontract,exceptwiththepurchaserspriorwritten consent.

15.5

16.Payment

16.1

16.2

16.3

17.Prices

16.4 17.1

18.Contract Amendments 19.Assignment

18.1 19.1

20.Subcontracts

20.1 Thesuppliershallnotifythepurchaserinwritingofallsubcontracts awardedunderthiscontractsifnotalreadyspecifiedinthebid.Such,in theoriginalbidorlater,shallnotrelievethesupplierfromanyliability orobligationunderthecontract. 21.1 21.2 Deliveryofthegoodsandperformanceofservicesshallbemadeby thesupplierinaccordancewiththetimescheduleprescribedbythe purchaserinthecontract. Ifatanytimeduringperformanceofthecontract,thesupplierorits subcontractor(s)shouldencounterconditionsimpedingtimelydelivery ofthegoodsandperformanceofservices,thesuppliershallpromptly notifythepurchaserinwritingofthefactofthedelay,itslikelyduration anditscause(s).Assoonaspracticableafterreceiptofthesuppliers notice,thepurchasershallevaluatethesituationandmayathis discretionextendthesupplierstimeforperformance,withorwithout

21.Delaysinthe suppliers performance

Page38of43

theimpositionofpenalties,inwhichcasetheextensionshallberatified bythepartiesbyamendmentofcontract. 21.3 21.4 Noprovisioninacontractshallbedeemedtoprohibittheobtainingof suppliesorservicesfromanyorganofstate. Therightisreservedtoprocureoutsideofthecontractsmallquantities ortohaveminoressentialservicesexecutedifanemergencyarises,the supplierspointofsupplyisnotsituatedatorneartheplacewherethe suppliesarerequired,orthesuppliersservicesarenotreadily available. ExceptasprovidedunderGCCClause25,adelaybythesupplierinthe performanceofitsdeliveryobligationsshallrenderthesupplierliableto theimpositionofpenalties,pursuanttoGCCClause22,unlessan extensionoftimeisagreeduponpursuanttoGCCClause21.2without theapplicationofpenalties. Uponanydelaybeyondthedeliveryperiodinthecaseofasupplies contract,thepurchasershall,withoutcancelingthecontract,be entitledtopurchasesuppliesofasimilarqualityanduptothesame quantityinsubstitutionofthegoodsnotsuppliedinconformitywith thecontractandtoreturnanygoodsdeliveredlateratthesuppliers expenseandrisk,ortocancelthecontractandbuysuchgoodsasmay berequiredtocompletethecontractandwithoutprejudicetohisother rights,beentitledtoclaimdamagesfromthesupplier. SubjecttoGCCClause25,ifthesupplierfailstodeliveranyorallofthe goodsortoperformtheserviceswithintheperiod(s)specifiedinthe contract,thepurchasershall,withoutprejudicetoitsotherremedies underthecontract,deductfromthecontractprice,asapenalty,asum calculatedonthedeliveredpriceofthedelayedgoodsorunperformed servicesusingthecurrentprimeinterestratecalculatedforeachdayof thedelayuntilactualdeliveryorperformance.Thepurchasermayalso considerterminationofthecontractpursuanttoGCCClause23. Thepurchaser,withoutprejudicetoanyotherremedyforbreachof contract,bywrittennoticeofdefaultsenttothesupplier,may terminatethiscontractinwholeorinpart: (a) ifthesupplierfailstodeliveranyorallofthegoodswithinthe period(s)specifiedinthecontract,orwithinanyextension thereofgrantedbythepurchaserpursuanttoGCCClause21.2; iftheSupplierfailstoperformanyotherobligation(s)underthe contract;or ifthesupplier,inthejudgmentofthepurchaser,hasengaged incorruptorfraudulentpracticesincompetingfororin executingthecontract.

21.5

21.6

22.Penalties

22.1

23.Termination fordefault

23.1

(b) (c)

23.2

Intheeventthepurchaserterminatesthecontractinwholeorinpart, thepurchasermayprocure,uponsuchtermsandinsuchmannerasit deemsappropriate,goods,worksorservicessimilartothose Page39of43

undelivered,andthesuppliershallbeliabletothepurchaserforany excesscostsforsuchsimilargoods,worksorservices.However,the suppliershallcontinueperformanceofthecontracttotheextentnot terminated. 23.3 Wherethepurchaserterminatesthecontractinwholeorinpart,the purchasermaydecidetoimposearestrictionpenaltyonthesupplierby prohibitingsuchsupplierfromdoingbusinesswiththeLegislaturefora periodnotexceeding10years. Ifapurchaserintendsimposingarestrictiononasupplieroranyperson associatedwiththesupplier,thesupplierwillbeallowedatimeperiod ofnotmorethanfourteen(14)daystoprovidereasonswhythe envisagedrestrictionshouldnotbeimposed.Shouldthesupplierfailto respondwithinthestipulatedfourteen(14)daysthepurchasermay regardtheintendedpenaltyasnotobjectedagainstandmayimposeit onthesupplier. AnyrestrictionimposedonanypersonbytheAccounting will,atthediscretionoftheAccountingOfficer,alsobeapplicableto anyotherenterpriseoranypartner,manager,directororotherperson whowhollyorpartlyexercisesorexercisedormayexercisecontrolover theenterpriseofthefirstmentionedperson,andwithwhichenterprise orpersonthefirstmentionedperson,isorwasintheopinionofthe AccountingOfficeractivelyassociated. Ifarestrictionisimposed,thepurchasermay,withinfive(5)working daysofsuchimposition,furnishtheNationalTreasury,withthe followinginformation: (i) thenameandaddressofthesupplierand/orpersonrestricted bythepurchaser; thedateofcommencementoftherestriction theperiodofrestriction;and thereasonsfortherestriction.

23.4

23.5

23.6

23.7

(ii) (iii) (iv) ThesedetailswillbeloadedintheNationalTreasuryscentraldatabase ofsuppliersorpersonsprohibitedfromdoingbusinesswiththeState. Ifacourtoflawconvictsapersonofanoffenceascontemplatedin sections12or13ofthePreventionandCombatingofCorruptActivities Act,No.12of2004,thecourtmayalsorulethatsuchpersonsnamebe endorsedontheRegisterforTenderDefaulters.Whenapersonsname hasbeenendorsedontheRegister,thepersonwillbeprohibitedfrom doingbusinesswiththepublicsectorforaperiodnotlessthanfive yearsandnotmorethan10years.TheLegislatureand/orTheNational Treasuryareempoweredtodeterminetheperiodofrestrictionand eachcasewillbedealtwithonitsownmerits.Accordingtosection32 oftheActtheRegistermustbeopentothepublic.TheRegistercanbe perusedontheNationalTreasurywebsite. When,afterthedateofbid,provisionalpaymentsarerequired,or Page40of43

24.Antidumping

24.1

andcountervailing dutiesandrights

antidumpingorcountervailingdutiesareimposed,ortheamountofa provisionalpaymentorantidumpingorcountervailingrightis increasedinrespectofanydumpedorsubsidizedimport,theStateis notliableforanyamountsorequiredorimposed,orfortheamountof anysuchincrease.When,afterthesaiddate,suchaprovisional paymentisnolongerrequiredoranysuchantidumpingor countervailingrightisabolished,orwheretheamountofsuch provisionalpaymentoranysuchrightisreduced,anysuchfavourable differenceshallondemandbepaidforthwithbythecontractortothe StateortheStatemaydeductsuchamountsfrommoneys(ifany) whichmayotherwisebeduetothecontractorinregardtosuppliesor serviceswhichhedeliveredorrendered,oristodeliverorrenderin termsofthecontractoranyothercontractoranyotheramountwhich maybeduetohim notwithstandingtheprovisionsofGCCClauses22and23,the suppliershallnotbeliableforforfeitureofitsperformancesecurity, damages,orterminationfordefaultifandtotheextentthathisdelayin performanceorotherfailuretoperformhisobligationsunderthe contractistheresultofaneventofforcemajeure. Ifaforcemajeuresituationarises,thesuppliershallpromptlynotify thepurchaserinwritingofsuchconditionandthecausethereof.Unless otherwisedirectedbythepurchaserinwriting,thesuppliershall continuetoperformitsobligationsunderthecontractasfarasis reasonablypractical,andshallseekallreasonablealternativemeansfor performancenotpreventedbytheforcemajeureevent. Thepurchasermayatanytimeterminatethecontractbygivingwritten noticetothesupplierifthesupplierbecomesbankruptorotherwise insolvent.Inthisevent,terminationwillbewithoutcompensationto thesupplier,providedthatsuchterminationwillnotprejudiceoraffect anyrightofactionorremedywhichhasaccruedorwillaccrue thereaftertothepurchaser. Ifanydisputeordifferenceofanykindwhatsoeverarisesbetweenthe purchaserandthesupplierinconnectionwithorarisingoutofthe contract,thepartiesshallmakeeveryefforttoresolveamicablysuch disputeordifferencebymutualconsultation. If,afterthirty(30)days,thepartieshavefailedtoresolvetheirdispute ordifferencebysuchmutualconsultation,theneitherthepurchaseror thesuppliermaygivenoticetotheotherpartyofhisintentionto commencewithmediation.Nomediationinrespectofthismattermay becommencedunlesssuchnoticeisgiventotheotherparty. Shoulditnotbepossibletosettleadisputebymeansofmediation,it maybesettledinaSouthAfricancourtoflaw. Mediationproceedingsshallbeconductedinaccordancewiththerules ofprocedurespecifiedintheSCC.

25.Force Majeure

25.1

25.2

26.Termination forinsolvency

26.1

27.Settlementof Disputes

27.1

27.2

27.3 27.4

Page41of43

27.5

28.Limitationof Liability

28.1

Notwithstandinganyreferencetomediationand/orcourtproceedings herein, (a) thepartiesshallcontinuetoperformtheirrespective obligationsunderthecontractunlesstheyotherwiseagree;and (b) thepurchasershallpaythesupplieranymoniesduethe supplier. Exceptincasesofcriminalnegligenceorwillfulmisconduct,andin thecaseofinfringementpursuanttoClause6; (a) thesuppliershallnotbeliabletothepurchaser,whetherin contract,tort,orotherwise,foranyindirectorconsequentiallossor damage,lossofuse,lossofproduction,orlossofprofitsorinterest costs,providedthatthisexclusionshallnotapplytoanyobligation ofthesuppliertopaypenaltiesand/ordamagestothepurchaser; and (b) theaggregateliabilityofthesuppliertothepurchaser,whether underthecontract,intortorotherwise,shallnotexceedthetotal contractprice,providedthatthislimitationshallnotapplytothe costofrepairingorreplacingdefectiveequipment. ThecontractshallbewritteninEnglish.Allcorrespondenceandother documentspertainingtothecontractthatisexchangedbytheparties shallalsobewritteninEnglish. ThecontractshallbeinterpretedinaccordancewithSouthAfrican laws,unlessotherwisespecifiedinSCC. Everywrittenacceptanceofabidshallcollectedinpersonorbeposted tothesupplierconcernedbyregisteredorcertifiedmailandanyother noticetohimshallbepostedbyordinarymailtotheaddressfurnished inhisbidortotheaddressnotifiedlaterbyhiminwritingandsuch postingshallbedeemedtobeproperserviceofsuchnotice. Thetimementionedinthecontractdocumentsforperforminganyact aftersuchaforesaidnoticehasbeengiven,shallbereckonedfromthe dateofpostingofsuchnotice. Aforeignsuppliershallbeentirelyresponsibleforalltaxes,stamp duties,licensefees,andothersuchleviesimposedoutsidethe purchaserscountry. Alocalsuppliershallbeentirelyresponsibleforalltaxes,duties,license fees,etc.,incurreduntildeliveryofthecontractedgoodstothe purchaser. Nocontractshallbeconcludedwithanybidderwhosetaxmattersare notinorder.PriortotheawardofabidtheLegislaturemustbein possessionofataxclearancecertificate,submittedbythebidder.This certificatemustbeanoriginalissuedbytheSouthAfricanRevenue Services.

29.Governing Language 30.Applicable Law 31.Notices

29.1

30.1 31.1

31.2

32.Taxesand Duties

32.1

32.2

32.3

Page42of43

33.National 33.1 Industrial Participation(NIP) Programme

TheNIPProgrammeadministeredbytheLegislatureofTradeand Industryshallbeapplicabletoallcontractsthataresubjecttothe NIPobligation.

Page43of43