PIKITUP (PTY) LTD
(JOHANNESBURG WASTE MANAGEMENT COMPANY)
CONDITIONS OF CONTRACT
CONDITIONS PERTAINING TO AFFIRMATIVE PROCUREMENT]
(FORM " B ")
(Incorporating Preferences For Affirmable Business Enterprise Status / Equity Ownership)
1. DEFINITIONS AND INTERPRETATIONS
The following words and expressions having capital initial letters shall have the meanings indicated.
1.1 AFFILIATED BUSINESS ENTITY: A business entity which has control of or the power to control another business entity, albeit indirectly, e.g., where a third person has control of or has the power to control both entities. Indicators of control shall, without limitation, include interlocking management or ownership, identity of interests among family members, shared facilities and equipment, or common use of employees.
1.2 AFFIRMABLE BUSINESS ENTERPRISE (ABE): A business which adheres to statutory labour practices, is a legal entity, registered with Department of Inland Revenue and an independent and continuing enterprise for profit, providing a Commercially Useful Function and:
a) which is at least two thirds Owned by one or more Previously Disadvantaged Individuals or, in the case of a company, at least two thirds of the shares are owned by one or more Previously Disadvantaged Individuals; and
b) whose management and daily business operations are in the control of one or more of the Previously Disadvantaged Individuals who effectively own it: provided, however, that the annual average annual turnover excluding Value Added Tax (VAT) of the business during the lesser of the period for which the business has been operating and the previous three financial years does not exceed:
i. Contractors who generate more than 75% of their turnover as Prime Contractors R25 million;
ii. Contractors who generate less than 25% of their turnover as Prime Contractors R10 million;
iii. labour-only sub-Contractors R2,5 million;
iv. Manufacturers R10 million;
v. Suppliers R15 million;
vi. professional service providers R2,5 million;
vii. other service providers, e.g., transporters R2,5 million;
and that the sum of the average annual turnovers over the same period of all the business concerns which are under the Control of Previously Disadvantaged Individuals within the business entity and Affiliated Business Entities does not exceed one and a half (1, 5) times the maximum allowable annual average turnover for the particular category of enterprise as set out in b) above.
NOTE: The restriction on turnover of all Affiliated Business Entities applies only in respect of the category of work for which the ABE participates in the performance of the Contract.
This in practice means that where Previously Disadvantaged Individuals have interests in a business not operating in the field in which an ABE is seeking participation in the Contract, such business turnovers are not considered in determining the total annual average turnover limits.
1.3 CONTROL: The possession and exercise of legal authority and power to manage the assets, goodwill and daily operations of a business and the active and continuous exercise of appropriate managerial authority and power in determining the policies and directing the operations of the business.
1.4 COMMERCIALLY USEFUL FUNCTION : The performance or real and actual work, or the provision of services, in the discharge of any contractual obligation, which shall include but not be limited to the performance of a distinct element of work which the business has the skill and expertise to undertake, and the responsibility for management and supervision of such work.
1.5 MANUFACTURER: A firm that operates or maintains a factory or establishment that produces on its premises materials or supplies required by the Prime Contractor for the performance of the Contract.
1.6 OWNED: Having all the customary incidents of ownership, including the right of disposition, and sharing all the risks and profits commensurate with the degree of ownership interest's as demonstrated by an examination of the substance, rather than the form of ownership arrangements.
1.7 PREVIOUSLY DISADVANTAGED INDIVIDUALS (PDI): Individuals who, being South African citizens, are socially and economically disadvantaged by the legacy of the South African political dispensation prior to April 28 1994. For the purpose of the Contract, the refutable presumption shall be made that individuals who fall into population groups that had no franchise in national elections prior to the introduction of the 1984 constitution and the tricameral parliamentary system, are Previously Disadvantaged Individuals. It is incumbent on individuals to demonstrate their claims to fall into such population groups on the basis of identification and association with and recognition by the members of such group.
1.8 PRIME CONTRACTOR: A Contractor who contracts with an employer as the principal or main Contractor or as a joint venture partner to such Contractors, to provide goods, services and works.
1.09 SUPPLIER: A firm that:
a) owns, operates or maintains a store, warehouse or other establishment in which materials or supplies required
for the performance of the Contract are bought, kept in stock and regularly sold to the public in the usual
course of business; and engages as its principal business, and in its own name, in the purchase and sale of
the products in question.
1.10 WOMAN: A female person who is a South African citizen and a female at birth.
2. ADJUDICATION OF TENDERS ON A POINTS SYSTEM
2.1 EXAMINATION OF TENDERS AND DETERMINATION OF RESPONSIVENESS
Prior to the detailed evaluation of tenders, the PIKITUP shall determine whether each tender:
¨ meets the requirements of these Conditions of Tender
¨ has been properly signed;
¨ is responsive to the requirements of the Contract documents;
¨ provides any clarification and/or substantiation that the Employer may require;
¨ complies with the tender submission requirements in all other respects.
A responsive tender is one which conforms to all the terms, conditions and Specifications of the Contract without material deviation or qualification. A material deviation or qualification is one which, in the Employer's opinion:
¨ could detrimentally affect the scope, quality, or performance of the Works;
¨ changes the Employer's or the Tenderer's risks and responsibilities under the Contract; or
¨ would affect the competitive position of other Tenderers presenting responsive tenders, if it were to be rectified.
If the tender does not meet the requirements or is not responsive, it will be rejected by the Employer, and may not subsequently be made acceptable to the Employer by correction or withdrawal of the non-conforming deviation or reservation.
2.2 . ADJUDICATION USING A POINTS SYSTEM
Responsive tenders will be adjudicated by the Employer using a system which awards points on the basis of:
¨ the tendered price (Ps)
¨ the status of the trading concern in terms of it’s affirmative business ownership.
¨ the locality from which the trading concern is operating from.
¨ preference claimed in terms goods/services provided.
¨ the trading concerns equity/PDI’s status.
The Employer will normally award the Contract to the Tenderer obtaining the highest number of points, but will not bind itself to do so.
2.3 . POINTS AWARDED FOR PRICE (PS)
A maximum of 90 points is allocated to Price on the following basis;
Ps = 90 (1 - (Pq-Pmin))
Pmin
where Ps = the number of tender adjudication points awarded for price.
Pmin = the price of the lowest responsive tender adjusted to a common base if applicable
Pq = the price of the responsive tender under consideration adjusted to a common base if applicable.
2.4 . POINTS AWARDED IN RESPECT OF THE STATUS AND LOCATION OF THE ENTERPRISE
A maximum of 10 (ten) points may be awarded to businesses which comply with the criteria set out below, are legal entities registered with ) the Department of Inland Revenue, are independent and continuing enterprises for profit which perform Commercially Useful Functions and have been operating as such for at least 3 months prior to the closing date for tenders; provided, however, that they undertake to execute a substantial portion of the Contract with their own resources and not to subcontract any portions of the Contract for which they, in the opinion of the Employer, have the in-house competence and expertise to perform.
Tender adjudication points relating to an enterprise's status will be granted only if the Employer is fully satisfied that the enterprise meets the relevant criteria; such credits will be granted at the Employer's sole discretion and will be based on the information presented.
NOTE: Tax reference numbers and, if applicable, VAT registration numbers must be provided to demonstrate that the enterprise is registered with the Department of Inland Revenue.
a) Affirmable Business Enterprises Status
Five (5) points will be allocated on a percentage basis to a trading concern’s ABE status, where the firm is:
100% PDI owned – 5 points
90% PDI owned – 4,5 points
80% PDI owned – 4 points
70% PDI owned – 3,5 points
60% PDI owned – 3 points
50% PDI owned – 2,5 points
40% PDI owned – 2 points
30% PDI owned – 1,5 point
20% PDI owned – 1 point
10% PDI owned – ½ point
0% PDI owned – 0 point
The above points adjudication points may be awarded to Affirmable Business Enterprises provided that such enterprises submit completed Affirmable Business Enterprise Declaration Affidavits with their tenders in support of their claims to such status.
b) Locality of Enterprise
A maximum of 2½ (two and a half) adjudication points may be awarded to enterprises where the vendor is operating from, and having its Domicilium citandi et executandi in developing areas within the city and/or province and/or any other area as defined by:
Group 1 - Two and a half (2, 5) points to be awarded for businesses operating from or within Regions 6, 10, 11.
Group 2 – Two (2) points to be awarded for businesses operating from or within Region 7, 8, 9.
Group 3 – One and a half points (1, 5) to be awarded for businesses operating from or within Region 1, 2,3,4,5.
Group 4 – One (1) point to be awarded for businesses operating from within Gauteng.
Group 5 – Half (0, 5) point to be awarded for businesses operating within the Republic of South Africa.
No point shall be awarded within the category for businesses operating outside of the Republic of South Africa.
Points awarded shall not be cumulative and shall be apportioned for a single group only. (e.g. Maximum 2, 5 points, Group 1)
c) Preference Claim
A maximum of 1½ (one and a half) adjudication points may be awarded to enterprises for goods or services supplied bearing the SABS stamp of approval or for companies accredited with the ISO 9000 quality management system or any other nationally recognized standard.
d) Equity Ownership
A maximum of 1 (one) adjudication point may be awarded to enterprises or concerns which demonstrate compliance with the Equity Act and have visible development plans for the advancement of PDI’s.
The aforementioned points under Category 3 and Category 4 may be accumulative.
2.5. TOTAL TENDER ADJUDICATION POINTS
A maximum of ten (10) points is attainable by summation of the total of each category. (Sum = category 1 + category 2 + category 3 + category 4)
3. PROCESS TO BE CONFIDENTIAL
a) Information supplied by Tenderers and information relating to the clarification, evaluation and adjudication of tenders and the award of a contract will not be disclosed to Tenderers or any other person not officially concerned with such processes.
b) Any effort by a Tenderer to influence the Employer's processing of tenders or the award of the Contract may result in the rejection of his tender.
4. TENDER DECLARATION AFFIDAVIT
Tenderers who wish to claim points in respect of their enterprise status must complete the Equity Declaration Affidavit and/or Affirmable Business Enterprise Declaration Affidavit, as relevant. A blank or incomplete Affidavit(s) shall be deemed to imply that the Tenderer is not claiming such points, in which case points will be awarded only on the basis of the tendered price.
5. PENALTIES
Should it transpire, after the award of the Contract, that some, or all, tender adjudication points claimed by the successful Tenderer and awarded to him were based on incorrect or false information, or the conditions pertaining to the awarding of points are not adhered to, the Contractor will be required to pay to the Employer penalties in an amount equal to one and a half times the number of such falsely-claimed points multiplied by the Tenderer’s offer.
Our tenders are advertised on Mondays in the legal section of The Sowetan, The Star and the Citizen.
· How to get opportunities to do business with PIKIUP.
- Respond to PIKITUP’s request for proposals. Usually advertised in The Star, The Sowetan and The Citizen on Mondays.
- Respond to PIKITUP’s tender advertisement... Usually advertised in The Star, The Sowetan and The Citizen on Mondays.
- Respond to PIKITUP’s request for quotations.
- Submit an unsolicited bid.
- Register with PIKITUP finance section as a service or goods supplier.
