PART 1/2

REQUESTS FOR PROPOSALS FOR THE APPPOINTMENT OF A SUITABLE

SERVICE PROVIDER FOR RENDERING TRAVEL MANAGEMENT SERVICES
FOR A PERIOD OF 36 MONTHS

RFP NO.: NHBRC 28/2017

CLOSING DATE: 23 FEBRUARY 2017

TIME: 11:00 am

COMPULSORY BRIEFING SESSION

DATE: 10 February 2017

TIME: 11:00 am
VENUE: 5 Leeuwkop road, sunninghill, Sandton

1
 SBD 1

INVITATION TO BID

YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE NATIONAL HOME BUILDERS
REGISTRATION COUNCIL

BID NUMBER: NHBRC 28/2017 CLOSING DATE: 23 February 2017 CLOSING TIME: 11H00

DESCRIPTION: REQUESTS FOR PROPOSALS FOR THE APPPOINTMENT OF A SUITABLE SERVICE

PROVIDER FOR RENDERING TRAVEL MANAGEMENT SERVICES FOR A PERIOD OF 36 MONTHS

VALITY PERIOD: Offer to be valid for ninety (90) days from the closing date of the bid.

TENDER DOCUMENTS MUST BE:

DEPOSITED IN THE TENDER BOX SITUATED AT: NHBRC HEAD OFFICE, 5 LEEUWKOP ROAD SUNNINGHILL,
SANDTON.

Bidders should ensure that bids are delivered timeously to the correct address. If the bid is late, it will not be accepted
for consideration.

ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS – (NOT TO BE RE-TYPED)

THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE
PREFERENTIAL PROCUREMENT REGULATIONS, 2011, THE GENERAL CONDITIONS OF CONTRACT (GCC)
AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT

THE FOLLOWING PARTICULARS MUST BE FURNISHED

NAME OF BIDDER …………………………………………………………………………………………………

POSTAL ADDRESS …………………………………………………………………………………………………
STREET ADDRESS ………………………………………………………………………………………….……..
TELEPHONE NUMBER CODE……………NUMBER…………………………………………..
CELLPHONE NUMBER ……………………………………………………………………………..
FACSIMILE NUMBER CODE ………… .NUMBER………………………………………………………
E-MAIL ADDRESS ………………………………………………………………………………………………..
VAT REGISTRATION NUMBER ………………………………………………………………………………………
HAS AN ORIGINAL AND VALID TAX CLEARANCE CERTIFICATE BEEN SUBMITTED? (SBD 2) YES or NO
HAS A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE BEEN SUBMITTED? (SBD 6.1) YES or NO

IF YES, WHO WAS THE CERTIFICATE ISSUED BY? AN ACCOUNTING OFICER AS CONTEMPLATED IN THE
CLOSE CORPORATION ACT (CCA)…….………………… ………...
A VERIFICATION AGENCY ACCREDITED BY THE SOUTH AFRICAN ACCREDITATION SYSTEM (SANAS); OR
A REGISTERED AUDITOR ………………………………...………..

2
 SBD 1
[TICK APPLICABLE BOX]

(A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE MUST BE SUBMITTED IN ORDER TO QUALIFY FOR
PREFERENCE POINTS FOR B-BBEE)

ARE YOU THE ACCREDITED REPRESENTATIVE IN SOUTH AFRICA FOR THE GOODS / SERVICES / WORKS
OFFERED? YES or NO [IF YES ENCLOSE PROOF]

SIGNATURE OF BIDDER …………………………………………………………

DATE ……………………………………………………..

CAPACITY UNDER WHICH THIS BID IS SIGNED…………………………………………………………………………

TOTAL BID PRICE……………………..Not applicable

______________________________________________________________________________________________
ANY ENQUIRIES REGARDING THE BIDDING PROCEDURE MAY BE DIRECTED TO:

Department: Supply Chain Management

Contact Person: Ricardo Francis

Tel: 011 317 0319/ 011 317 0273

E-mail address: ricardof@nhbrc.org.za/ mphasak@nhbrc.org.za

3
 SBD 2

4
 SBD 3.1
PRICING SCHEDULE (Not Applicable)
NOTE: ONLY FIRM PRICES WILL BE ACCEPTED. NON-FIRM PRICES (INCLUDING PRICES SUBJECT
TO RATES OF EXCHANGE VARIATIONS) WILL NOT BE CONSIDERED

Name of bidder……………………………………… Bid number………………….....

Closing Time:……………………………………….Closing date:…………………………….

OFFER TO BE VALID FOR 90 DAYS FROM THE CLOSING DATE OF BID.

__________________________________________________________________________
ITEM QUANTITY DESCRIPTION BID PRICE IN RSA CURRENCY
NO. ** (ALL APPLICABLE TAXES INCLUDED)

- Required by: NHBRC

- At: HEAD OFFICE,GAUTENG

- Brand and model N/A

- Country of origin ………………………………….

- Does the offer comply with the specification(s)? *YES/NO

- If not to specification, indicate deviation(s) ………………………………….

- Period required for delivery ………………………………….

*Delivery: Firm/not firm

- Delivery basis ……………………………………

Note: All delivery costs must be included in the bid price, for delivery at the prescribed destination.

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

*Delete if not applicable

5
 SBD 4
DECLARATION OF INTEREST
1. Any legal person, including persons employed by the state¹, or persons having a kinship with persons employed by the state,
including a blood relationship, may make an offer 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/her position in relation to the evaluating/adjudicating authority where-

- the bidder is employed by the state; 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 where it is known that such a relationship exists between the
person or persons for or on whose behalf the declarant acts and persons who are involved with the evaluation and or
adjudication of the bid.

2. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

2.1 Full Name of bidder or his or her representative: ………………………………………………………….

2.2 Identity Number: …………………………………………………………………………………………………

2.3 Position occupied in the Company (director, trustee, shareholder²): ……………………………………..

2.4 Company Registration Number: ………………………………………………………………………..…….

2.5 Tax Reference Number: ………………………………………………………………………………….………

2.6 VAT Registration Number: ………………………………………………………………………………....

2.6.1 The names of all directors / trustees / shareholders / members, their individual identity numbers, tax reference numbers and, if
applicable, employee / persal numbers must be indicated in paragraph 3 below.
¹“State” means –
(a) any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the
Public Finance Management Act, 1999 (Act No. 1 of 1999);
(b) any municipality or municipal entity;
(c) provincial legislature;
(d) national Assembly or the national Council of provinces; or
(e) Parliament.

²”Shareholder” means a person who owns shares in the company and is actively involved in the management of the enterprise or business and
exercises control over the enterprise.

2.7 Are you or any person connected with the bidder YES / NO
presently employed by the state?

2.7.1 If so, furnish the following particulars:

Name of person / director / trustee / shareholder/ member: ……....………………………………

Name of state institution at which you or the person
connected to the bidder is employed : ………………………………………
Position occupied in the state institution: ………………………………………

Any other particulars:

………………………………………………………………
………………………………………………………………
………………………………………………………………

2.7.2 If you are presently employed by the state, did you obtain YES / NO
the appropriate authority to undertake remunerative
work outside employment in the public sector?
6
 SBD 4

2.7.2.1 If yes, did you attached proof of such authority to the bid YES / NO
document?

(Note: Failure to submit proof of such authority, where

applicable, may result in the disqualification of the bid.

2.7.2.2 If no, furnish reasons for non-submission of such proof:

…………………………………………………………………….
…………………………………………………………………….
…………………………………………………………………….

2.8 Did you or your spouse, or any of the company’s directors / YES / NO
trustees / shareholders / members or their spouses conduct
business with the state in the previous twelve months?

2.8.1 If so, furnish particulars:

…………………………………………………………………..
…………………………………………………………………..
…………………………………………………………………...

2.9 Do you, or any person connected with the bidder, have YES / NO
any relationship (family, friend, other) with a person
employed by the state and who may be involved with
the evaluation and or adjudication of this bid?
2.9.1If so, furnish particulars.
……………………………………………………………...
…………………………………………………………..….
………………………………………………………………

2.10 Are you, or any person connected with the bidder, YES/NO
aware of any relationship (family, friend, other) between
any other bidder and any person employed by the state
who may be involved with the evaluation and or adjudication
of this bid?

2.10.1 If so, furnish particulars.

………………………………………………………………
………………………………………………………………
………………………………………………………………

2.11 Do you or any of the directors / trustees / shareholders / members YES/NO

of the company have any interest in any other related companies
whether or not they are bidding for this contract?

2.11.1 If so, furnish particulars:

…………………………………………………………………………….
…………………………………………………………………………….
…………………………………………………………………………….

7
 SBD 4
3 Full details of directors / trustees / members / shareholders.

Full Name Identity Number Personal Tax State Employee

Reference Number / Persal
Number Number

4 DECLARATION

I, THE UNDERSIGNED (NAME)………………………………………………………………………

CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT.

I ACCEPT THAT THE STATE MAY REJECT THE BID OR ACT AGAINST ME IN TERMS OF PARAGRAPH 23 OF THE GENERAL
CONDITIONS OF CONTRACT SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………….. ..……………………………………………
Signature Date

…………………………………. ………………………………………………
Position Name of bidder

8
 SBD 6.1
PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT
REGULATIONS 2011

This preference form must form part of all bids invited. It contains general information and serves as a
claim form for preference points for Broad-Based Black Economic Empowerment (B-BBEE) Status Level of
Contribution

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 preference point system shall be applicable.
1.3 Preference points for this bid shall be awarded for:
(a) Price; and
(b) B-BBEE Status Level of Contribution.
1.4 The maximum points for this bid are allocated as follows:
POINTS
PRICE 90
B-BBEE STATUS LEVEL OF CONTRIBUTION 10
Total points for Price and B-BBEE must not 100
exceed

1.5 Failure on the part of a bidder to 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 a sworn affidavit confirming
annual turnover and level of black ownership in case of an EME and QSE together with the bid,
will be interpreted to mean that preference points for B-BBEE status level of contribution are not
claimed.
1.6 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.
2. DEFINITIONS
(a) “all applicable taxes” includes value-added tax, pay as you earn, income tax, unemployment
insurance fund contributions and skills development levies;
(b) “B-BBEE” means broad-based black economic empowerment as defined in section 1 of the
Broad-Based Black Economic Empowerment Act;
(c) “B-BBEE status level of contributor” means the B-BBEE status received by a measured
9
 SBD 6.1
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 Broad-
Based Black Economic Empowerment Act;
(d) “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;
(e) “Broad-Based Black Economic Empowerment Act” means the Broad-Based Black
Economic Empowerment Act, 2003 (Act No. 53 of 2003);
(f) “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;
(g) “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;
(h) “contract” means the agreement that results from the acceptance of a bid by an organ of state;
(i) “EME” means an Exempted Micro Enterprise as defines by Codes of Good Practice under
section 9 (1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003);
(j) “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;
(k) “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;
(l) “non-firm prices” means all prices other than “firm” prices;
(m) “person” includes a juristic person;
(n) “QSE” means a Qualifying Small EEnterprise as defines by Codes of Good Practice under
section 9 (1) of the Broad-Based Black Economic Empowerment Act, 2003 ( Act No. 53 of
2003);
(o) “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;
(p) “sub-contract” means the primary contractor’s 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;
(q) “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;
(r) “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
(s) “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.

10
 SBD 6.1
3. ADJUDICATION USING A POINT SYSTEM
3.1 The bidder obtaining the highest number of total points will be awarded the contract.
3.2 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   Pt  P min 
Ps  801   or Ps  901  
 P min   P min 
Where
Ps = Points scored for comparative price of bid under consideration
Pt = Comparative price of bid under consideration
Pmin = Comparative price of lowest acceptable bid
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 Number of points Number of points

Contributor (90/10 system) (80/20 system)

1 10 20
2 9 18
3 8 16
4 5 12
5 4 8
6 3 6
7 2 4
8 1 2
Non-compliant 0 0
contributor
11
 SBD 6.1

5.2 A bidder who qualifies as a EME in terms of the B-BBEE Act must submit a sworn affidavit
confirming Annual Total Revenue and Level of Black Ownership.
5.3 A Bidder other than EME or QSE 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.
5.4 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.
5.5 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.
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 sub-contract.
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:
7. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.4
AND 5.1
7.1 B-BBEE Status Level of Contribution: . = ………(maximum of 10 or 20 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 B-BBEE certificate issued by a
Verification Agency accredited by SANAS or a Registered Auditor approved by IRBA or a sworn
affidavit.
8. SUB-CONTRACTING
8.1 Will any portion of the contract be sub-contracted?
(Tick applicable box)

YES NO

8.1.1 If yes, indicate:

i) What percentage of the contract will be subcontracted............…………….…………%
ii) The name of the sub-contractor…………………………………………………………..
iii) The B-BBEE status level of the sub-contractor......................................……………..
iv) Whether the sub-contractor is an EME.
(Tick applicable box)

12
 SBD 6.1
YES NO

9. DECLARATION WITH REGARD TO COMPANY/FIRM

9.1 Name of company/firm:…………………………………………………………………………….

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]

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) The information furnished is true and correct;

ii) The preference points claimed are in accordance with the General Conditions as indicated in
paragraph 1 of this form;
iii) 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;
iv) 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) disqualify the person from the bidding process;

13
 SBD 6.1
(b) recover costs, losses or damages it has incurred or suffered as a result of that
person’s conduct;
(c) 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;
(d) 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
(e) forward the matter for criminal prosecution.

WITNESSES
……………………………………….
1. …………………………………….. SIGNATURE(S) OF BIDDERS(S)

DATE: …………………………………..
2. …………………………………….
ADDRESS …………………………………..
…………………………………..
…………………………………..

14
 SBD 8
DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT
PRACTICES
1 This Standard Bidding Document must form part of all bids invited.

2 It serves as a declaration to be used by institutions in ensuring that when goods and services are being
procured, all reasonable steps are taken to combat the abuse of the supply chain management system.

3 The bid of any bidder may be disregarded if that bidder, or any of its directors have-

a. abused the institution’s supply chain management system;

b. committed fraud or any other improper conduct in relation to such system; or
c. failed to perform on any previous contract.

4 In order to give effect to the above, the following questionnaire must be completed and submitted
with the bid.

Item Question Yes No

4.1 Is the bidder or any of its directors listed on the National Treasury’s Database Yes No
of Restricted Suppliers as companies or persons prohibited from
doing business with the public sector?
(Companies or persons who are listed on this Database were informed in
writing of this restriction by the Accounting Officer/Authority of
the institution that imposed the restriction after the audi alteram
partem rule was applied).

The Database of Restricted Suppliers now resides on the National Treasury’s

website(www.treasury.gov.za) and can be accessed by clicking on
its link at the bottom of the home page.

4.1.1 If so, furnish particulars:

4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters Yes No
in terms of section 29 of the Prevention and Combating of Corrupt
Activities Act (No 12 of 2004)?
The Register for Tender Defaulters can be accessed on the National Treasury’s
website (www.treasury.gov.za) by clicking on its link at the bottom of the
home page.

4.2.1 If so, furnish particulars:

4.3 Was the bidder or any of its directors convicted by a court of law (including a Yes No
court outside of the Republic of South Africa) for fraud or corruption
during the past five years?

4.3.1 If so, furnish particulars:

4.4 Was any contract between the bidder and any organ of state terminated Yes No
during the past five years on account of failure to perform on or
comply with the contract?

4.4.1 If so, furnish particulars:

15
 SBD 8

CERTIFICATION
I, THE UNDERSIGNED (FULL NAME)…………………………………………………
CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST

ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………………... …………………………..
Signature Date

………………………………………. …………………………..
Position Name of Bidder

16
 CERTIFICATE OF INDEPENDENT BID DETERMINATION

1 This Standard Bidding Document (SBD) must form part of all bids¹ invited.

2 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).² 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
institution’s supply chain management system and or committed fraud or any other improper
conduct in relation to such system.

b. 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.

4 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.
5 In order to give effect to the above, the attached Certificate of Bid Determination (SBD 9) must be
completed and submitted with the bid:

¹ Includes price quotations, advertised competitive bids, limited bids and proposals.

² 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

17
 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) has been requested to submit a bid in response to this bid invitation;
(b) could potentially submit a bid in response to this bid invitation, based on their
qualifications, abilities or experience; and
(c) provides the same goods and services as the bidder and/or is in the same line of
business as the bidder

18
 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 consortium³ 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) prices;
(b) geographical area where product or service will be rendered (market allocation)
(c) methods, factors or formulas used to calculate prices;
(d) the intention or decision to submit or not to submit, a bid;
(e) the submission of a bid which does not meet the specifications and conditions of the
bid; or
(f) 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.

³ 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.

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 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 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

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