SPECIAL CONDITIONS OF CONTRACTBD 4.1

DEPARTMENT OF CORRECTIONAL SERVICES

SPECIAL CONDITIONS OF CONTRACT:

APPOINTMENT OF A SERVICE PROVIDER FOR THE SUPPLY, INSTALLATION, DELIVERY, COMMISSION, MAINTENANCE FOR THE PERIOD OF THREE (3) YEARS AND TRAINING ON THE LAPTOP TROLLEYS FOR THE DEPARTMENT OF CORRECTIONAL SERVICES EDUCATION PROJECT

IMPORTANT NOTES
This bid and all contracts emanating there from will be subject to the General Conditions of Contract issued in accordance with Treasury Regulation 16A published in terms of the Public Finance Management Act, 1999 (Act 1 of 1999).
The Special Conditions of Contract are supplementary to that of the General Conditions of Contract. Where, however, the Special Conditions of Contract are in conflict with the General Conditions of Contract, the Special Conditions of Contract prevail.
These conditions form part of the bid and failure to comply therewith may invalidate the bid.

Table of Contents

1CONTRACT PERIOD

2RESPONSE FIELDS

3ACCEPTABLE BIDS / OFFERS (QUALIFYING CRITERIA)

4TAX CLEARANCE CERTIFICATE

5VALUE ADDED TAX

6SUBMISSION OF BIDS

7BID SUBMISSION REQUIREMENTS

8LATE BIDS

9VALIDITY OF B-BBEE STATUS LEVEL VERIFICATION CERTIFICATES

10PRICE AND PRICE QUALIFICATION

11COMMUNICATION

12COUNTER CONDITIONS

13PARTICIPATION OF GOVERNMENT OFFICIALS IN THE BIDDING PROCESS

14FRONTING

15VENDOR ASSESSMENT (DUE DILLIGENCE)

17EVALUATION / AWARDING OF BID

18PRODUCT COMPLIANCE

19INFORMATION/DOCUMENTATION FOR THIS BID

20ORDERS / DELIVERIES / DELIVERY BASIS

21INDEMNITY AND INSURANCE

22CONTRACT MANAGEMENT

23PENALTIES

24PAYMENTS

25DISPUTES

1CONTRACT PERIOD

1.1The contract shall be for the once-off supply, installation, delivery and commission of the laptop trolleys and the maintenance contract period shall be for three (3) years.

2RESPONSE FIELDS

2.1It is imperative that bidders submit responsive bids by completing all mandatory response fields.

2.2Unless specifically provided for in the bid document, no bids transmitted by telegram, facsimile or similar apparatus shall be considered.

2.3The bid forms are drawn up so that certain essential information is to be furnished in a specific manner. Any additional particulars shall be furnished in the enclosed questionnaire or in a separate annexure.

2.4The bid forms should not be retyped or redrafted but photocopies may be prepared and used. Additional offers may be made for any item but only on a photocopy of the page in question or on other forms obtainable from the relevant institution. Additional offers made in any other manner may be disregarded.

2.5Bidders shall check the numbers of the pages and satisfy them that none are missing or duplicated. No liability shall be accepted in regard to claims arising from the fact that pages are missing or duplicated.

2.6Failure on the part of the bidder to sign this bid form (SBD 1) and thus to acknowledge and accept the conditions in writing or to complete the attached forms, questionnaires and Terms of Reference in all respects, may invalidate the bid.

2.7The preference claim and other relevant forms, if attached, shall be completed, signed and submitted with the bid. Documentary proof as substantiation of preferences claimed and to the satisfaction of the Department, should be handed in together with the bid, e.g.:

a)BEE Certificate issued by:

-Verification Agency accredited by SANAS (Accessible at

-Registered Auditors

b)Cipro Certificates

c)Certified copy of the identity books of all the Directors / members/ shareholders/trustees who are actively involved with the company.

3ACCEPTABLE BIDS/OFFERS (QUALIFYING CRITERIA)

3.1Only bids complying with all requirements as stipulated in the General Conditions and Special Conditions of Contract will be regarded as acceptable.

3.2The following qualifying criteria must be strictly adhered to. Non-compliance on these criteria will automatically invalidate your bid.

3.2.1The bidder will be expected to attend a Compulsory Briefing Session of which proof of attendance must be submitted by means of a completed BD 6.2 signed by the bidder and Department official.

3.2.2An original and valid tax clearancecertificate issued by the South African Revenue Services certifying that the taxes of the bidder are in order must be submitted at the closing date and time of the bid. (Also see paragraph 4 below and SBD 2 of bid document).

3.2.3Proof from your financial institution/bank not older than thirty (30) days that your company has the financial ability to successfully execute this contract by means of completing the BD 33 form or alternatively by providing a letter from the financial institution / bank confirming that the bidder has an account that is being conducted in a satisfactory manner.

3.2.4The bidder must provide a valid certificate of accreditation by the Original Equipment Manufacturer specifying that the bidder is a licensed or accredited reseller. The letter or certificate(s) should clearly indicate that it is issued for this bid. No internet printouts will be allowed.

4TAX CLEARANCE CERTIFICATE

4.1An original and valid tax clearance certificateissued by South African Revenue Services must be submitted together with the bid at the closing date and time of the bid. No copies and/or certified copies will be acceptable.

4.2Failure to submit the original and valid tax clearance certificate at the time of closure will automatically invalidate the bid.

5VALUE ADDED TAX

5.1All bid prices are inclusive of 14% Value Added Tax (VAT), except in the case of a person that is not required to register for Value Added Tax.

5.2Failure to comply with this condition will invalidate the bid.

6SUBMISSION OF BIDS

6.1The Technical and Financial Proposal should be submitted in separate, sealed envelopes with the bid number, service description, name and address of the bidder and the closing date.

6.2Bidders must submit bids on the closing date, not later than the closing time.

6.3The Financial Envelopes of each bid received will be locked away until the Technical Envelopes have been evaluated by the Bid Evaluation Committee. Only those bidders whose Technical Proposals meet the Technical Threshold Score set out in the Bid Evaluation Criteria and pass the requirements of the due diligence process, will be considered in respect of their Financial Proposals.

7BID SUBMISSION REQUIREMENTS

7.1Bidders are required to submit their proposals in Two envelopes in the following format:

Envelope 1 marked with the name of the Bidder and titled: “QUALIFYING DOCUMENTSAND TECHNICAL PROPOSAL: APPOINTMENT OF A SERVICE PROVIDER FOR THE SUPPLY, INSTALLATION, DELIVERY, COMMISSION, MAINTENANCE FOR THE PERIOD OF THREE (3) YEARS AND TRAINING ON THE LAPTOP TROLLEYS FOR THE DEPARTMENT OF CORRECTIONAL SERVICES EDUCATION PROJECT”.

7.1.1The following requirements must be submitted under Schedule 1 of the bid response:

  • Full contact details for the bidder, as well as names with ID numbers of directors of the bidding company and, if applicable, of each Joint Venture or Consortium member (Business registration documents).
  • A Tax Clearance Certificate from South African Revenue Services in respect of the bidder and all South African firms to be sub-contracted to it for this assignment or all parties forming a Joint Venture/Consortium (See SBD 2).
  • Signed and stamped compulsory information meeting attendance certificate (BD 6.2).
  • The prime prospective biddersmust provide proof of their entity’s financial ability and stability to execute the contract in question by means of having the attached (BD 33) form completed and signed by their registered financial institution/bank or alternatively provide a letter from their financial institution/bank confirming that the bidder’saccount is being conducted in a satisfactory manner.
  • A valid certificate of accreditation by the Original Equipment Manufacturer specifying that the bidder is a licensed or accredited reseller. The letter or certificate(s) should clearly indicate that it is issued for this bid. No internet printouts will be allowed.

7.1.2The following requirements must be submitted under Schedule 2 of the Bid Response:

  • Completed Bid documents (BD and SBD Forms):
  • General Conditions of Contract (14 pages)
  • SBD 1 - Invitation to bid (do not indicate price on this form) (3 pages)
  • SBD 4 - Declaration of Interest (4 pages)
  • SBD 5- National Industrial Participation Programme (3 pages)
  • SBD 6.1- Claim Form in terms of the Preferential Procurement Regulations, 2011 (6 pages)
  • SBD 8 - Declaration of Bidder's past SCM Practices (2 pages)
  • SBD 9 - Certificate of Independent Bid Determination (3 pages)

7.1.3The following requirements must be submitted under Schedule 3 of the Bid Response:

  • The bidder’s proposal setting out the bidder’s understanding of the Terms of Reference as well as the bidder’s response to / information required by all stipulations outlined in the Terms of Reference (Technical Proposal).

N.B. This Envelope must NOT include any price proposal

7.2Envelope 2 marked with the name of the Bidder and titled: “FINANCIAL PROPOSAL:APPOINTMENT OF A SERVICE PROVIDER FOR THE SUPPLY, INSTALLATION, DELIVERY, COMMISSION, MAINTENANCE FOR THE PERIOD OF THREE (3) YEARS AND TRAINING ON THE LAPTOP TROLLEYS FOR THE DEPARTMENT OF CORRECTIONAL SERVICES EDUCATION PROJECT”.

  • This envelope must contain the following:
  • A detailed Pricing Schedule clearly indicating the cost categories as per AnnexureA & B. This pricing must not be amended to include additional cost categories.
  • SBD 3.1: Pricing Schedule.

8LATE BIDS

8.1Bids received after the closing date and time, at the address indicated in the bid documents, will not be accepted for consideration and where practicable, be returned unopened to the bidder.

9VALIDITY OF B-BBEE STATUS LEVEL VERIFICATION CERTIFICATES

9.1Bidders are required to submit an original and valid B-BBEE Status Level Verification Certificates or certified copies thereof together with their bids, to substantiate their B-BBEE rating claims.

9.1.1Bidders who fail to submit the B-BBEE Status Level Verification Certificates or are non-compliant contributors do not qualify for preference points for B-BBEE but will not be disqualified from the bidding process.

9.2Enquiries in respect of B-BBEE Status Level Verification Certificates

9.2.1Any enquiries in respect of B-BBEE Status Level Verification Certificates may be directed to the Department of Trade and Industry (DTI) as follows:

Director: Empowerment and Enterprise Development Division (EEDD)

Tel:(012) 394 1694

Fax:(012) 394 2694

10PRICE AND PRICE QUALIFICATION

10.1Prices shall be quoted in the South African currency.

10.2Pricing for the supply, delivery and installation of the laptop trolleys and the three year maintenance will be firm.

10.3The bid prices shall be given in the units shown.

10.4Prices must be inclusive of delivery cost and all taxes.

11COMMUNICATION

11.1No communication with any Procurement Official will be allowed during the running period of the bid.

11.2Communication after the closing date of the bid must be in writing and addressed to the Director Procurement.

11.3The Department may request clarification regarding information provided by bidders. Bidders are to supply the required information within the specified period. Failing to do so will invalidate your bid.

12COUNTER CONDITIONS

12.1Bidder’s attention is drawn to the fact that amendments to any of the Bid Conditionsor setting of counter conditions by bidders will result in the invalidations of such bids.

13PARTICIPATION OF GOVERNMENT OFFICIALS IN THE BIDDING PROCESS

13.1In accordance with Sections 118 and 121 of the Correctional Services Act, 1998 (Act 111 of 1998), no member of the Department of Correctional Services may participate in the bidding process of the Department.

13.2Should the bidder or any of its directors/members or shareholders be employees of the any organ of state as contemplated in the Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000), such member/director or shareholder must submit a certified copy of the permission granted by the Executive Authority of his/her Department to conduct remunerative work in the Public Service as contemplated in the Public Services Act, 1994 (Act 103 of 1994) Chapter Vii, Sections 30 and 31.

13.3Failure to submit the proof will automatically invalidate the bid. Knowingly not submitting it will make the person liable for financial misconduct. Also see the conditions of the Declaration of Interest (SBD 4) attached to the bidding document.

14FRONTING

14.1The Department of Correctional Services supports the spirit of Broad Based Black Economic Empowerment and recognizes that real development can only be achieved through individuals and businesses conducting themselves in accordance with the Constitution and in:

a)An honest, fair, equitable, transparent and legally compliant manner. Against this background the Department of Correctional Services condemn any form of fronting.

b)The Department of Correctional Services, in ensuring that bidders conduct themselves in an honest manner will as part of the bid evaluation processes, conduct or initiate the necessary enquiries, investigations to determine the accuracy of the representations made in the bid documents.

14.2Taking the above into consideration, proof for the points claimed must be provided together with the bid or on request to do so. Failure to provide proof will result in that the points claimed will not be considered during the evaluation process.

15VENDOR ASSESSMENT (DUE DILLIGENCE)

15.1The Department will have the right to confirm the ability of bidders to carry out this contract successfully. This includes an investigation by the Department or its appointee, of the bidder’s financial position, previous contracts carried out, availability of skills or knowledge, existing work load, after sales service, delivery periods, quality and quantity of products.

15.2To ensure that the bidder has the financial ability and stability to execute the contract,the bidder must provide proof together with their bid document that he/she has the financial ability and stability to execute the contract. For this purpose, the bidder is allowed to either:

15.3Provide the attached (BD 33) form that must be completed and signed by their registered financial institution/bank confirming their financial ability and stability to execute the contract; or

15.3.1Provide a letter of good standing not older than thirty (30) days from their registered financial institution/bank confirming that the bidder conducts the bank account in a satisfactory basis.

15.3.2Omission to provide such proof will automatically invalidate your bid.

15.4Please provide contactable details of current and previous clients for the supply and delivery of similar items and where the business was gained in the last twelve months.

15.5Should the contractor not cooperate in any of these matters and/or do not have the capability to execute the contract his offer will be regarded as not acceptable.

16EVALUATION PHASES

16.1The following method of evaluation will be used:

  • After the closing date, a Bid Evaluation Committee will evaluate the bids.

16.2Evaluation will be conducted in the following phases:

  • Phase 1: All bids will be measured against the qualifying criteria (See paragraph 3). Only bids that comply with these criteria will be considered for further evaluation.
  • Phase 2: The Bid Evaluation Committee evaluates the bids against the set criteria. A form will be used which will reflect the name of the bidder, the different criteria, with space provided to record the points awarded and motivation for points awarded. The allocation of points will not be effected on a basis of consensus.

The following scoring matrix will be used:

Very poor / Poor / Fair / Good / Very good / Excellent
0 / 1 / 2 / 3 / 4 / 5

The following formula will be used to convert to the points scored against the weight:

Where:

Ps =Percentage scored for functionality by bid under consideration

So =Total score of bid under consideration

Ms =Maximum possible score

The Bid Evaluation Committee will meet to shortlist all bidders who meet the threshold score of 70%.

  • Phase 3: Calculation of points

During phase 2, points for price will be calculated for all shortlisted bidders in accordance with the following formula:

Where:

Ps =Points scored for price of bid under consideration

Pt =Rand value of bid under consideration

Pmin =Rand value of lowest acceptable bid

  • The final points will be calculated as follows:

Points for price:90 points

B-BBEE Status Level of Contribution: 10 points

Final points: 100 points

The Bid Evaluation Committee will hereafter meet to come to a decision and to formulate recommendations to the Bid Adjudication Committee.

17EVALUATION / AWARDING OF BID

17.1In terms of Regulation 6 of the Preferential Procurement Regulations, 2011 pertaining to the Preferential Procurement Policy Framework Act, 2000 (Act no. 5 of 2000), responsive bids will be considered by the Department on the 80/20 or 90/10 Preference Point System (The 80/20 Preference Point System for the acquisition of services, works or goods with a Rand value R30 000-00 to R1 million or 90/10 Preference Point System for acquisition of services, works or goods with a Rand value above R1 million).

17.2The following formula will be used to calculate the points for price:

For cases with a Rand value R30 000-00 to R1 million (all applicable taxes included):

For cases with a Rand value exceeding R1 million (all applicable taxes included):

Where :

Ps=Points scored for comparative price of bid or offer under

consideration

Pt=Comparative price of bid or offer under consideration

Pmin=Comparative price of lowest acceptable bid or offer.

17.3Subject to sub-regulation (3), points will be awarded to a bidder for attaining their B-BBEE Status Level of Contributor in accordance with the table below

B-BBEE Status Level of Contributor / Number of Points
80/20 Preference Point System / 90/10 Preference Point System
1 / 20 / 10
2 / 18 / 9
3 / 16 / 8
4 / 10 / 5
5 / 8 / 4
6 / 6 / 3
7 / 4 / 2
8 / 2 / 1
Non-compliant Contributor / 0 / 0

17.4Bidders are required to complete the preference claim form (SBD 6.1) and submit their original and valid BBB EE status verification certificate or a certified copy thereof at the closing date and time of the bid in order to claim the B-BBEE status level points.

17.5Failure on the part of the bidder to comply with paragraph15.4 will be deemed that the preference points for B-BBEE status level of contribution are not claimed and will therefore be allocated a zero.

17.6A maximum of twenty (20)/ten (10) points may be allocated in accordance with sub-regulation (2).

17.7The points scored by a bidder in respect of the level of B-BBEE contribution contemplated in sub-regulation (2) will be added to the points scored for price as calculated in accordance with sub-regulation (1).

17.8The Department may, before a bid is adjudicated or at any time, require a bidder to substantiate claims it has made with regard to points claimed.

17.9This bid will be awarded per item.

17.10Subject to Regulation 7of the Preferential Procurement Regulations, 2011, the contract will be awarded to the bidder who scores the highest number of points per item.

17.10.1In the event that two or more bids have scored equal total points, the contract will be awarded to the bidder scoring the highest number of preference points for BBBEE.

17.10.2Should two or more bids be equal in all respects, the award shall be decided by drawing of lots.

17.10.3However, in accordance with Section 2(1) (f) of the Act, the Department has the right to award the contract to the bidder that did not score the highest total of points.

18PRODUCT COMPLIANCE

18.1Bids shall be for the supply, installation, delivery, commission, maintenance for the period of three (3) years and training on the laptop trolleys strictly in accordance with the Terms of Reference.