POLICY ON UNISA PUBLIC TENDERS Overview

POLICY ON UNISA PUBLIC TENDERS Overview Preamble UNISA invites suppliers to tender for the supply of goods and services where the proposed contract amount is R500 000 or more (amount annually updated for inflation). Lower amounts are subject to the requirements stipulated in the Purchasing Policy. The policy on Public Tenders sets out the specific requirements and conditions that public tenders should comply with and the obligations that will be applicable to the successful contractor. The key value guiding this policy is adherence to preferential purchasing objectives and proficient purchasing practices. Definitions The words and terms shall, unless contrary to or deliberately determined otherwise by the contract, have the meanings ascribed thereto hereunder. Word(s) Meaning Approval or approved The University s written approval of a tender by the Tender Committee. Buyer UNISA inclusive of its own duly authorised representative, successors and assignees. Contract The University s general and Tender Conditions, and specifications as concluded with the successful tenderer. Contract price(s) or price(s) Price quoted by the tenderer and accepted by the University for the Delivery date execution of the contract. The date as stipulated in the contract for the delivery of goods, rendering of services or completion of projects. Goods and/or services The machinery, equipment, apparatus, renting of buildings, materials, services or Month consultants/professional services that must be provided in terms of the contract. A calendar month. Tender Page 1 of 16 Continued on next page

Overview, Continued Word(s) Specifications UNISA Tender closing date Tender register Meaning Any specifications as drawn up by the University, provided together with tender documents. University of South Africa. The last day and time tenders can be submitted according to the advertisement. The hard copy (bound) book in which the details of received tenders are recorded and signed for by the Purchasing Director or nominee and Chairperson of Tender Committee or nominee. Tender Committee The Committee constituted by Management Committee to administer the tendering process of UNISA. Tenderer A person who responds to a specific invitation to tender by formally submitting a tender at the designated tender address before the closing date inclusive of the tenderer s personal legal representative, heir, successor and assignees. Tender Address As stipulated in the tender advertisement. Tender documents Documents (forms) as prescribed by the Tender Committee plus any other documentation submitted by the tenderer to the University in response to a specific invitation to tender. BEEP objectives Objectives set out in the Legal Advisor Purchasing Policy. UNISA official Legal Advisor. Continued on next page Tender Page 2 of 16

Overview, Continued Change Control Any change to this policy must be effected in accordance with University accepted procedure. Policy Violation Staff members who do not adhere to this policy will be subject to disciplinary action. Management Committee Authority Policy deviations will be evaluated by the Tender Committee who will make recommendations to the Management Committee. In this document This document deals with the following topics: Topic See Page 1 Introduction 4 2 Submission of Tenders 5 3 Specifications and Prices 7 4 Acceptance of Tenders 9 5 Withdrawal of a Tender 11 6 Delivery and Supplying of Goods 12 7 Other Tender matters 13 8 Evaluation Process 16 Tender Page 3 of 16

1 Introduction 1.1 Invitation for tenders UNISA invites suppliers who meet the criteria to tender for the provision of goods or rendering of services. An invitation for tenders is made to the public by means of advertisement in local and/or national newspapers. Public tenders are only invited when the total value (all costs and taxes) is R500 000 or more (reviewed annually for inflation). All bids below this value will be done in accordance to the details in the Purchasing Policy. 1.2 Tender documents Tender documents are supplied in single copies and tenderers must make their own copies for personal reference. These documents are to be collected from UNISA Purchasing Departments at either the Florida or Pretoria Campus as stipulated. An administration fee may be levied. 1.3 Key values The key values guiding the tender process of the University are as follows : Adherence to preferential procurement objective and related legislation. Fair, open and transparent tender process. To source service and goods of high quality at the right price from a suitable service provider/supplier. To do business with service providers of high business ethics. To meet needs of UNISA, in a highly professional manner. To abide by the UNISA code of ethics. 1.4 Administration of tenders The Tender Committee must ensure that the tenders are administered in terms of this policy and any deviations must be reported to Management Committee. The Tender Committee must develop administration procedures in line with this Policy document. Tender Page 4 of 16

2 Submission of Tenders 2.1 Requirements Tenders must strictly comply with the specific requirements and conditions as set out in the advertisement, which may include some of the conditions described below. 2.2 How to submit tender documents Properly completed tender documents must be submitted in a sealed envelope. The tender number, closing time and date, together with a description of the relevant goods/services tendered for must be clearly indicated on the envelope. The sealed envelope may not contain any documents other than those indicated on the envelope. 2.3 When and where to submit tender documents Tender documents must be posted in the tender box as stipulated in the advertisement, on or before the stipulated cut-off time and date. Tenders received after the cut-off time on the stipulated date will not be considered. 2.4 What to include The tenderer must include applicable information (by means of appropriate documents) to substantiate the requirements as set out in the advertisement in order to enable the University to consider and investigate any technical particulars that require clarification in the tender. 2.5 Schedules Where applicable, annexures as referred to in the document, must be properly completed and included since they will be binding. When the tenders are discussed consideration will be paid to these schedules in order to determine comparable merits. 2.6 Format Tender documents must be typed, printed and/or completed in black ink. Any tender document completed in pencil will not be acceptable. 2.7 Signed or initialled All tender documents, as well as all annexures, must be signed by a properly authorised signatory of the tenderer. Any alterations must be initialled properly by the tenderer. Neglect to do so will disqualify a tender. No correction fluid may be used on the tender documents. Continued on next page Tender Page 5 of 16

Submission of Tenders, Continued 2.8 Signatory Guarantee The tenderer must confirm that its signatory has the authority of the legal entity to sign the applicable documents by attaching a certified copy of the relevant resolution of the legal entity. 2.9 Supplier Application Form Completion of the Supplier application form is compulsory. Failure to complete this form will disqualify a bid. Tender Page 6 of 16

3 Specifications and Prices 3.1 Documentation No tender will be considered unless it is accompanied by adequate or certified documentation to indicate that goods offered comply with the specifications. Tenderers must stipulate the country of origin and the name of the manufacturers of the offered articles. 3.2 Substitutes Tenderers are requested to indicate alternative equivalents or substitutable articles that comply with the specifications clearly in a separate annexure together with applicable substantive documentation. 3.3 SANS specifications Tenderers are requested to mention whether the offered articles are manufactured according to SANS specifications, in which case a certified copy of the latest SANS certificate must be attached to the tender document. Preference will be given to articles bearing the SANS stamp. The University retains the right, in cases where a tenderer has indicated that the offered article(s) comply with SANS specifications to have the article(s) tested by SANS at the tenderer s expense should it be found that, according to the University, the offered article(s) do not comply with the specifications. The tests must be carried out before the Tender Committee makes its recommendation. 3.4 Price information Tenderers must indicate clearly whether prices are firm, subject to escalation or to a particular rate of exchange. In the absence of such information, prices will be regarded as fixed for the full duration of the contract. Furthermore, where tenderers indicate that their prices are subject to confirmation or are in any way conditional, such a tender will not be considered. 3.5 Currency All prices must be quoted in South African currency and in accordance to VAT legislation. 3.6 Discounts Any discounts granted to the University must be indicated. Continued on next page Tender Page 7 of 16

Specifications and Prices, Continued 3.7 Prices not fixed If prices quoted are not fixed, price increases will only be accepted if the tenderer can submit documentary proof to the satisfaction of the tender committee that such price increases are anticipated and unavoidable. Proof of such conditions to be submitted with the tender. 3.8 What prices must include All quoted prices must separately specify handling, insurance, delivery, installation, packaging costs, VAT and transaction related costs that will affect the total cost to UNISA. 3.9 Delivery conditions Tenderers must stipulate delivery conditions clearly, for example: F.O.R (free on rail), buyer station or delivered UNISA, etc. Tender Page 8 of 16

4 Acceptance of Tenders 4.1 Opening of Tenders Tenders will be collected from the tender box by the Purchasing Director or nominee and the Chairperson of Tender Committee or nominee. Tenders will be opened after the advertised cut-off date and time by the above officials of the Tender Committee and entered into the tender register. 4.2 Confidentiality Under no circumstances will the contents and price of one tender be made known to other tenderers. Any employee who breaches this requirement will be held liable for gross misconduct. 4.3 Reservations of UNISA regarding tenders The University reserves the following rights on the acceptance of tenders: To accept any tender in its entirety or only partially according to its discretion. To accept any tender, irrespective of whether it is the lowest bid or not. The University will not be liable for any financial expenditure incurred in drawing up the tender or for any steps taken by the tenderer for the drawing up of such tender. University reserves the right not to award a tender. 4.4 Adjudication process The decision of the Management Committee on choice of tenderer is final. The University will not have any adjudication process regarding non-successful tenders. A report of the Tender Committee will be forwarded to the Management Committee. 4.5 Preferential Purchasing Policy UNISA applies the principles of Black Economic Empowerment purchasing. For details refer to Purchasing Policy. Continued on next page Tender Page 9 of 16

Acceptance of Tenders, Continued 4.6 Preferred Supplier Executive Director: Finance must monitor expenditure on suppliers to ensure adherence to BEEP targets. Tender Page 10 of 16

5 Withdrawal of a Tender 5.1 Validity period Tenders should be valid for a period of sixty (60) calendar days calculated from the closing date of the tender. During this period of time the tender may not be withdrawn. 5.2 Withdrawal of tender If a tender accepted by the committee is withdrawn, the tenderer will be liable for the difference in costs between his/her tender and the following tender that must of necessity be accepted. However, this will not be the case if documentary evidence can be submitted to the satisfaction of the tender committee of UNISA to justify the withdrawal. 5.3 Communication of tender results All unsuccessful tenderers will be advised of their unsuccessful tenders within ten days from the date of the final decision. 5.4 Cancellation of contract due to false information Any contract awarded on account of false information furnished by the tenderer in order to secure preference may be cancelled at the sole discretion of the University without prejudice to other remedies the University may have. Tender Page 11 of 16

6 Delivery and Supplying of Goods 6.1 Orders Orders will be placed as and when required. It is an explicit condition that no goods and/or services may be supplied before an official order has been placed by the University. 6.2 Within delivery period Successful tenderers must execute all orders strictly within the delivery period as specified. Should the tenderer default in this respect the University retains the right to place orders elsewhere and all additional expenses will be for the account of the tenderer. In this case the tenderer will be held in breach of contract. All orders placed during the validity period of the tender must be fully executed or appropriate legal recourse will be sought. Goods ordered before or on the last day of the tender period will be delivered at tender price, even though the delivery is after the tender period. 6.3 Permits Unless otherwise indicated, it must be assumed that the University does not have a permit for the import of the required goods. 6.4 Goods delivered/ supplied to correspond with specifications Goods and materials supplied must be equivalent, in all respects, to the samples supplied or as stipulated in the specifications of the invitation to tender. Any goods/services that do not correspond to the specifications or, for any reason, prove unsatisfactory will be rejected. The tenderer will be informed of such action after which the goods must be removed immediately at the cost of the tenderer. The fact that no objection is recorded on delivery will not prejudice the University s rights in terms of this clause in this respect. 6.5 Dispute arising from the above Any dispute arising from or in connection with this contract shall be finally resolved in accordance with the Rules of the Arbitration Foundation of Southern Africa by an arbitrator or arbitrators appointed by the Foundation. Tender Page 12 of 16

7 Other Tender matters 7.1 General By submitting a tender, the tenderer confirms that he/she is aware of all prescriptions and circumstances pertaining to the tender, and the goods/services must be offered as stipulated by the specifications. 7.2 Samples Where specified, samples must be presented to the Purchasing Department of UNISA. Failure to adhere to this requirement will render the tender invalid. 7.3 Return of samples Such samples will be retained for the full duration of the contract so that they can be referred to in the event of a dispute. Tenderers must state clearly whether the samples must be returned or not. Should there be no indication in this regard the samples will be retained without any liability being assumed for them. Any costs incurred in returning the samples will be for the account of the tenderer. 7.4 Inspection rights The University retains the right to test or inspect all goods to be delivered according to a contract at any time during the manufacturing process regarding the quality of the material used as well as its finishing off. Such inspection and/or test must be deemed merely for the satisfaction of the University and will in no way relieve the contractor of any obligations in terms of the contract. 7.5 Contract A contract is entered into only with the tenderer and the contract or any portion thereof, any share or interest therein, may not be sub-let, transferred, assigned or granted to someone else without the specific written permission and conditions of the University. 7.6 Interpretation The contract shall be interpreted in all respects in accordance with South African law and any dispute with a tenderer will be negotiated in South Africa. Continued on next page Tender Page 13 of 16

Other Tender matters, Continued 7.7 Cancellation of contract The University retains the right to cancel the contract summarily should the tenderer in any way fail to comply with his/her commitments. Any loss incurred as a result of such cancellation shall be recovered from the tenderer. The University reserves the right to cancel the contract should it come to the attention of the University that the successful tenderer is involved in criminal activities, illegal business practices, corruption and other unethical behaviour. 7.8 Sequestration /Liquidation The following will apply should one or more of the stated events occur: SHOULD An order be made for the attachment of the tenderer s estate, whether provisionally or finally in sequestration. Application be made for such order. The tenderer applies for voluntary surrender of estate. The tenderer commits any act of insolvency as contemplated in Section 8 of the Insolvency Act 24 of 1936 as amended. THEN The University has the right to terminate the contract summarily and without any legal recourse for any compensation to the tenderer and without prejudice to the right of the University to institute legal proceedings because of one or more of the said events. The tenderer terminates business. The court order for the liquidation of such company/close corporation. 7.9 Contracting The contracts emanating from the tenders must incorporate all the Legal matters and provisions raised in this policy and must be reviewed by the Legal Advisor of the University prior to signing. All contracts must comply with the Policy regarding official signing powers. Completion and sign off of the due diligence certificate to precede the signing of any contract. Continued on next page Tender Page 14 of 16

Other Tender matters, Continued 7.10 Acceptance of conditions Failure on the part of the tenderer to sign this tender form and thus to acknowledge and accept the conditions in writing or to complete the attached forms, questionnaires and specifications in all respects, may invalidate the tender. Tenders must be submitted on the official forms and should not be qualified by the tenderer s own conditions of tender. Failure to comply with these requirements or to renounce specifically the tenderer s own conditions of tender, when called upon to do so, will invalidate the tender. Tender Page 15 of 16

8 Evaluation Process 8.1 Tender specification The tender specifications and advertisement must be drawn up by the end-user Department or Business Unit and approved by the Tender Committee prior to the advertisement of the tender. 8.2 Approval of evaluation criteria The tender evaluation criteria and point allocation process must be approved by the Tender Committee prior to advertisement of the tender. 8.3 Evaluation process The evaluation process must be carried out by the Working Committee of the Tender Committee. The evaluation process and point scoring must be documented and must be transparent. The basis of point allocation must be able to stand scrutiny. 8.4 Minimum requirements The following must form part of the standing requirements, that must be fulfilled by each tenderer and certified supporting documentation must be submitted : SARS clearance i.e. Income Tax, VAT, etc. Company/Close Corporation registration certificate. Identity documents in the case of a sole proprietorship. Shareholders agreements/certificates/founding agreements for entities claiming Black Economic Empowerment points for ownership. Any registration certificate pertaining to the relevant industry, e.g. ECB (Electrical Contractors Board). A copy of the VAT registration certificate. Failure to submit any of these documents will disqualify a bid. Tender Page 16 of 16