ETHEKWINI MUNICIPALITY DEVELOPMENT INVESTMENT PROMOTION UNIT OF INVESTMENT...

ETHEKWINI MUNICIPALITY

ECONOMIC DEVELOPMENT & INVESTMENT PROMOTION UNIT

DEPARTMENT OF INVESTMENT PROMOTION

Tender Closing on: 11:00am Wednesday, 15 February 2017

QUOTATIONS ARE TO BE DEPOSITED IN THE BOX PROVIDED IN THE FOYER OF THE MATERIALS MANAGEMENT BUILDING, CORPORATE PROCUREMENT(MATERIALS MANAGEMENT) ARCHIE GUMEDE PLACE, OLD FORT COMPLEX(AND NOT TO ANY OTHER DEPT) OFFICIAL TERMS OF REFERENCE TO BE PICKED FROM:

Reception Area Contracts Department Old Fort Place

ECONOMIC DEVELOPMENT & Ms Sinovuyo Makongwana INVESTMENT PROMOTION UNIT 031 311 4782

DURBAN

FOR OFFICE USE ONLY

TENDER NAME : CIDB Register – Y N

VAT Register – Y N

Price (excl) VAT Price (incl)

Submitted

Corrected

Description PQ Number

FEASIBILITY STUDY & BUSINESS PLAN BRIDGE CITY INCUBATOR

7G‐32233

Economic Development& Planning Cluster Economic Development & Investment Promotion Unit

11th Floor, 41 on Victoria Embankment

41 Margaret Mncadi Avenue, Durban, 4001 PO Box 5856, Durban, 4000

Tel 031 311 4227 Fax: 031 332 1720 www.durban.gov.za

08 February 2017

Enquiry: Ms Sinovuyo Makongwana

Telephone no: 031 311 4782/4227

TERMS OF REFERENCE: FEASIBILITY STUDY & BUSINESS PLAN – BRIDGE CITY BUSINESS INCUBATOR‐ ‐ CONTRACT NO: 7G‐32233

Terms Of Reference: Feasibility Study & Business Plan – Bridge City Business Incubator‐ ‐ CONTRACT NO: 7G‐32233

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Table of Contents

DEFINITIONS OF ACRONYMS/ GLOSSARY ............................................................................................................. 3

1. BACKGROUND & CONTEXT ........................................................................................................... 4

1.1. BACKGROUND TO THE PROJECT BEING TENDERED .................................................................................... 4

2. PURPOSE OF THE TERMS OF REFERENCE ....................................................................................... 5

3. PROJECT OBJECTIVES. ................................................................................................................... 5

3.1.INTRODUCTION: WHY THE PROJECT IS IMPORTANT ........................................................................................ 5

3.2. OVERALL OBJECTIVE ............................................................................................................................... 5

3.3. SPECIFIC OBJECTIVE ............................................................................................................................ 6

4. SCOPE OF WORK .......................................................................................................................... 6

SPECIFIC ACTIVITIES ........................................................................................................................................ 6

4.1. CONSULTATION WORKSHOPS:‐ .................................................................................................................. 6

4.2. SITE APPRAISAL ....................................................................................................................................... 7

4.3. IDENTIFY ENVIRONMENTAL ASSESSMENT INTERVENTIONS:‐ ............................................................................ 8

4.4. CONDUCT SECTOR AND MARKET ANALYSIS:‐ ............................................................................................... 8

4.5. CONDUCT ECONOMIC AND FINANCIAL ANALYSIS:‐ ........................................................................................ 9

4.6. INSTITUTIONAL DEVELOPMENT ANALYSIS:‐ .................................................................................................. 9

4.7. RECOMMENDED BUSINESS MODEL:‐ ........................................................................................................ 10

5. OUTPUTS AND DELIVERABLES ........................................................................................................ 10

6. ANTICIPATED TIME FRAMES ....................................................................................................... 11

7. REQUIREMENTS ......................................................................................................................... 11

7.1. PERSONNEL .................................................................................................................................... 11

7.2. SHORT TERM EXPERTS ........................................................................................................................... 12

8. THE ADJUDICATION PROCESS ..................................................................................................... 13

10. COMMENCEMENT AND TERMINATION DATES.............................................................................. 16

11. FORMAT REQUIREMENTS FOR PROPOSALS. ................................................................................. 17

12. COPYRIGHT ON DOCUMENTS ....................................................................................................... 17

13. PROJECT BUDGET AND DISBURSEMENT........................................................................................ 17


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14. METHOD OF PAYMENT ................................................................................................................. 18

15. SPECIFICATION AND PROCUREMENT PRIORITIES .......................................................................... 18

16. TAX CLEARANCE AND BROAD BASED BLACK ECONOMIC EMPOWERMENTCERTIFICATE ................ 19

17. CONFIDENTIALITY ......................................................................................................................... 19

18.SUBMISSION OF PROPOSALS ......................................................................................................... 19

19. PROPOSAL DEADLINE ................................................................................................................... 19


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Definitions of acronyms/ glossary

BBBEE: Broad Based Black Economic Empowerment

GIS: Geographic Information System

IDP: Integrated Development Plan(s)

KZN: KwaZulu‐Natal

LTE: Long Term Expert

RLED: Regional and Local Economic Development

PSC: Project Steering Committee

SMME: Small, Medium and Micro enterprise

SPD: Service Providers Database

STE: Short Term Expert

ToR: Terms of Reference

VAT: Value Added Tax


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1. BACKGROUND & CONTEXT

1.1. Background to the project being tendered

The Bridge City project was launched in 2007 as a Presidential Lead project. The project is strategically

located along the MR93, the main access road into the Inanda, Ntuzuma and KwaMashu (INK) area and

is approximately 17km north of Durban. Bridge City is being built on what was once a ‘buffer strip’ that

separated former Indian and Black Townships such as Phoenix and KwaMashu as part of Group Areas

Act Policy. The Bridge City Project therefore aims to integrate the surrounding communities by creating

a system of networks that links existing road infrastructure with new urban networks. The project also

provides the communities with access to urban and social opportunities that were previously difficult to

access in the past. The Bridge City project offers opportunities such as new residential developments,

shopping facilities, Regional public facilities and public transport infrastructure which are an integral part

of the overall vision for this mixed use project. In essence it delivers social, residential and economic

urban opportunities. To a large degree the development of the Bridge City Project addresses many of

these spatial and non‐issues.

The Bridge City project is a public–private initiative and is spearheaded by the eThekwini Municipality

and Tongaat Hullet Development (THD). These two development partners joined to form the Effingham

Joint Venture in which THD was tasked to manage this large scale project. Apart from the funding that

the JV provides, the City as a stand‐alone entity will fund the projects that have regional scale benefits

and as such sources grant funding from various organisations such as from National Treasury which

invested approximately R 80,300,000.00 million in the Bridge City Project. The NDPG has aided the

development of three main projects within the Bridge City Project namely the Bridge City Intermodal

Transport Facility for an amount of R42, 580,139, the Bhejane Road section which crosses the Bridge

City platform including the half diamond interchange on the MR 93 of R23, 488,587 as well as the public

transport routes to the sum of R14, 231,139 within Bridge City.

The eThekwini Municipality has identified industry sector development as a key economic driver. In

alignment with this vision, national priorities and strategies the Economic Development and Investment

Promotion Unit (ED&IPU) has undertaken the establishment and support of industry bodies (Clusters) as

a means to enhance the national and international competitiveness of prioritized sectors within the

local and provincial economy.


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The total concept for the site will consist of a business park with mini factories/shops which will support

a suitable industry sector’s value chain as a primary requirement. The Business Incubator will be an area

that is designed to provide opportunities to small businesses within and intermodal transport and

movement node.

2. PURPOSE OF THE TERMS OF REFERENCE

The purpose of this document is to solicit the services of a service provider to assist the eThekwini

Municipality in undertaking a study that will determine the most feasible industry sector within in the

Bridge City context and a subsequent business plan for the establishment of the Business Incubator.

Prospective bidders can include a firm or consortium of firms or a consortium of individual experts.

3. PROJECT OBJECTIVES.

3.1.Introduction: Why the project is important

The INK area has a high unemployment rate, inorder to survive the majority of unemployed residents of

the population rely on infomal business sector as a means of providing their daily income requirements.

Most of the informal businesses operate in the residents back yards, illegally occupied vancant

governemnt land, closer to taxi ranks, etc. The fact that these businesses are operating in informal

conditions perpetuate the presumption that their products & services are inferior.This therefore leads to

losses in potential income as most customers would rather go to the city to buy the very same goods

and services.

This project seeks to change the current trading conditions of local entrepreneurs, to unclock the value

chain and improve effeciencies in business opportunities within the local areas and to create a link

between established corporate enterprise and existing small and micro enterprise. The project seeks to

create suitable business development conditions for township enterprises by establishing a Business

Incubator where various quality goods and services can be sourced at reasonable prices to stimulate

local economy by encouraging the rand to circulate longer in the townships, growing the economy and

creating jobs.

3.2. Overall objective


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The overall objective of the project is to secure the services of a suitable and experienced Service

provider to undertake a feasibility study and operational business plan to determine the feasibility and

busines implementation model for the Bridge City Business Incubator.

3.3. Specific objective

The specific objectives of the project are:

To conduct consultation workshops with local SMME’s as per the categories mentioned above

to investigate feasibility of the Incubator.

To conduct site appraisal for specified existing site Bridge City Lower Platform, Remainder of

Portion 133 of Erf 8 and propose best option for accessibility.

To conduct situational and market analysis illustrating the problem from a demand and supply

perspective of the small business environment in Bridge City (INK to a greater extent).

to conduct a full cost and benefits analysis for construciton and operations of the Light Industrial

Incubator; (link up with City Architects regarding the capital costs as indicated in the SMME

Facilities Programme).

To develop instituitional arrangement models for management of the centre in an economically

sustainable manner;

To recommend a detailed business model; do a comparison between a purely commecial and

subsidised model.

To document the results in a feasiblity report.

To form a project steering committee with key stakeholders (public & private sector)

To review each business model option and determine its feasibility, evaluate costs of each

option.

To develop a detailed business plan with a self sustaining financial model for the best option/s if

any.

4. SCOPE OF WORK

Specific Activities

4.1. Consultation workshops:‐

Identify all relevant stakeholders;


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Determine the perceived and anticipated interests from stakeholders and incorporate the

anticipated roles and responsibilities that persons and interest groups would have in this

project;

Conduct a consultation workshop to discuss challenges facing small business in located in INK;

Identify stakeholders to participate in the Project Steering Committee (PSC); and

Initiate and maintain a practical stakeholder participation and consultation process through

the subsequent phases.

4.2. Site appraisal

Assess the existing levels of infrastructure and services with respect to the proposed site, in

order to inform the levels of infrastructure required to be provided by the local municipality;

Review the proposed site and make recommendations with respect to zoning and

environmental requirements, accessibility, ownership, institutional arrangements; viable type

of business and size and the envisaged impact of the project

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Provide detailed estimates of market size or potential;

Identify main customers or target market and provide short and long‐term outlook thereof;

Provide assessment of competitors;

Describe trends affecting the market and how market needs will be served;

Explain the promotion and marketing methods.

4.5. Conduct Economic and Financial Analysis:‐

Provide a market potential analysis that describes development prospects and niche market

focus for the proposed centres, based on local market characteristics;

Provide comments on the designs and specifications done on the proposed facility; providing

recommendations in terms of the ideal size and composition;

Develop a detailed financial plan that incorporates the following:

Capital Expenditure detailing the construction costs, building layout, water etc.,

based on actual market‐related quotations;

Operating expenditure e.g. maintenance, water & lights, security etc.;

Detailed financial plan to determine whether or not the proposed development is

economically viable and sustainable based on realistic budget projections, and

projected revenue streams;

Detailed cash flow projection over a period of five years;

Risk analysis of the proposed developments; and

Identification of potential funders.

Detailed revenue generation model e.g. Rent and lease revenue

4.6. Institutional Development Analysis:‐

Assess and propose institutional arrangements that could have a positive influence in the

implementation of the project.

Identify key management structure to manage the facility for maintenance and operational

purposes.

Identify a letting criterion for interested or potential tenants.


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Workshop institutional arrangements with stakeholders with the aim of solidifying

developmental values aligned with the municipality’s LED, IDP strategies such as poverty

alleviation, job creation and SMME development.

Propose options for a management model to optimise the financial viability of the centre and

indicate how the management entity will be making income and how much subsidy should be

granted to cover operations.

4.7. Recommended Business Model:‐

Provide a detailed business model that considers all information and alternatives to

determine the feasibility of the Bridge City Business Incubator; and provide a rationale to

substantiate the recommendation on whether to proceed with developing a comprehensive

business plan for the proposed project. It is important that the following aspects are

addressed:

Financial model that details the costs and returns to the project;

Operational model that outlines the operational process;

Institutional model that identifies the most suitable institutional and partnership

arrangement;

Socioeconomic model that outlines the socioeconomic impact of the proposed

development on the study area; (How will the project uplift local small business).

Risk management model that highlights the risks and mitigating strategies to combat

those risks.

5. OUTPUTS AND DELIVERABLES

5.1. Inception Report (that will detail the focus of support as well as the associated outputs, the

support that will be provided, the detailed methodology that will be followed, all logistical

arrangements, a detailed activity based work‐plan as well as any other deliverables)

5.2. Draft Feasibility Report (that will include feasibility component of the study complete with

analysis and recommendations; institutional and marketing plan; report outlining management

and operational plan; financial plan; implementation plan).


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5.3. Final Feasibility Study Report& Business Plan(that will include a brief implementation and a

summary business plan).

6. ANTICIPATED TIME FRAMES

The proposed timeframe for the project is 3 months.

7. REQUIREMENTS

7.1. Personnel

The Service Provider must comprise of a team that includes Long Term Experts (LTE) required to work a

minimum of 70 days per annum as well as support staff with the requisite skills to fulfill the

requirements of the Terms of Reference. The LTE should consist of the following:

7.1.1. Key Expert 1: Team Leader/Project Manager

Must have an officially recognized qualification with majors in any of the following; Economics,

Development Studies, Commerce, Engineering or Business Administration, Property

development

5‐10 years relevant experience in Local Economic Development, project development, market

research, management and/or monitoring.

Possess skills and competencies in the following areas: project development, management, and

monitoring; time management; planning and organising; report writing; budgeting and financial

management in non‐financial management capacity; presentation skills; communication and

networking; good interpersonal relations; analytical thinking and problem solving; computer

literacy.

Knowledge of project and contract management; feasibility studies, sector studies, business

plans, IDPs (integrated development plans), project financing, SWOT and LED Plans; partnerships

for economic development; legislation, policy and strategy affecting local economic

development; and research methodologies.

7.1.2. Key Expert 2: Finance Specialist


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Must have an officially recognized qualification with majors in Economics, Finance, or

Commerce preferably a registered Carted Accountant (CA) with 3‐5 years relevant experience

within the finance sector.

The Specialist should have a sound knowledge of business planning practices and financial

management and analysis, with experience in project management, cost analysis, capital

expenditure analysis, cash flow forecasts, and budget preparation.

The Finance Specialist should also have extensive experience in report writing, financial

modelling and possess presentation skills.

7.1.3. Key Expert 3: Sector Specialist/Researcher

The Sector Specialist must have an officially recognized qualification with majors in any of the

following; Economics, Development Studies, Commerce, Town Planning or Business

Administration with 3‐5 years relevant experience with economic development.

The Specialist should have a sound knowledge of business planning practices, market research,

and financial analysis and budget preparation with experience in SMME/Cooperative

development and property development economics.

The Specialist should also have extensive experience in report writing and possess presentation

skills.

7.2. Short Term Experts

The service provider should make provision for the use of Short Term Experts (STE) for the

fulfillment of the scope of work during the contract period as and when required.

The STE is required to work for a maximum of 60 days per annum. The STE must consist of a

multi‐disciplinary team including and not limited to specialists in the following fields:

Architecture, Manufacturing, Auto Industry, Quantity Surveying, Property Management,

Accounting, Engineering etc. depending on the activities and capacity of the team members.

These team members should demonstrate the following key competencies:

Sufficient knowledge and expertise in order to accurately assess the factors that will impact

on the successful implementation of the project mentioned above.


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Be suitably qualified and experienced to provide detailed and specialist advice and informati

on on the formulation of the abovementioned project.

8. THE ADJUDICATION PROCESS

The adjudication of proposals will be in terms of the example below:


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CRITERIA Max

Score

STAGE 1

ADHERENCE TO BRIEF/UNDERSTANDING OF TOR 10

Does the proposal clearly demonstrate good understanding of the brief? All

key deliverables are distinctly identified and adequately addressed. o Nil – No submission

o Poor (score 25%; 2.5 points) – The proposal shows limited understanding of the brief and key deliverables,

o Satisfactory (score 70%; 7 points) – The brief is well understood, clearly articulated, and key components are adequately addressed. The proposal reflects necessary concepts but has insufficient detail for it to be distinctive

o Good (score 90%; points points and above) – The proposal clearly demonstrates an understanding of the project’s vision and the brief. The key components are adequately addressed and are uniquely aligned to and identifiable with the project.

METHODOLOGY/STRATEGY 40

Is the methodology innovative, detailed to adequately address all elements

of the project and the technical approach stating how each will be

executed? o Nil – No submission

o Poor (score 25%; 10 Points) – The approach and the methodology are poor/ unlikely to satisfy the project objectives or requirements. The tenderer has misunderstood certain aspects of the scope of work and does not deal with the critical aspects of it. The methodology is unacceptable

o Satisfactory (score 70%; 28 Points) – The approach is adequate and tailored to address the specific project objectives and methodology. The approach does adequately deal with the critical characteristics of the project. The project plan and manner in which risk is managed is specific.

o Good (score 90%; 36 Points, and above)–The approach is specifically tailored to address the specific project objectives and methodology and is sufficiently flexible to accommodate changes that may occur during execution. The quality plan and approach to manage risk etc. Is specifically tailored to the critical characteristics of the project. The methodology is comprehensive and the important issues are approached in an innovative and efficient way, indicating that the tenderer has outstanding knowledge


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EXPERTISE AND EXPERIENCE 40

Do the service provider and team member have relevant and sufficient

Experience and expertise in projects of similar nature and scale? Does the

service provider have capacity and experience to raise specified

sponsorship? o Nil – No submission

o Poor (score 25%; 10 Points) – The team has limited relevant experience in projects of similar nature and/or has not under taken a project of this magnitude. The proposed team is weak in important areas‐ collaboratively has less than 3 year experience.

o Satisfactory (score 70%; 28 Points) – The tenderer has relevant experience in projects of similar nature but has not directly undertaken a project of this magnitude.

o Key personnel allocated to the project have reasonable relevant experience.

o Good (score 90%; 36 Points, and above) – The tenderer has extensive experience in projects of similar nature and has directly undertaken similar projects. The key personnel allocated have extensive relevant.

COHESIVENESS & SYNERGY 10

Has the operational plan, with clear outcomes, timelines and resources

aligned to each activity clearly explained? o Nil – No submission

o Poor (score 25%; 2.5 points) – The operational plan is sketchy, there is no clarity in terms of resources aligned to the project. Key project areas lack qualified members and members’ roles do not match with the operational plan.

o Satisfactory (score 70%; 7 points) – Operational plan is complete & reasonably detailed. Resources appear adequate.

o Good (score 90%; points and above) – besides meeting ‘satisfactory’ rates and resources have been clearly defined and make provision for all key risk areas

TOTAL 100

THE MINIMUM THRESHOLD OF THIS FUNCTIONALITY IS 70 OUT OF 100 POINTS. ANY BID WHICH

FAILS TO MEET THIS MINIMUM THRESHOLD WILL BE DISQUALIFIED. ONLY BIDS SCORING 70 AND

ABOVE WILL PROCEED TO STAGE 2.


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Stage 2: Budget and Empowerment

CRITERION MAX

Budget 80

Broad – Based Black Economic Empowerment 20

Total 100

Broad Based Black Economic Empowerment Points will be awardedb to bidders in accordance

with the table below:

B‐BBEE Status Level

of Contributor

90/10 Point System 80/20 Point 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

contributor

0 0

10. COMMENCEMENT AND TERMINATION DATES

It is anticipated that delivery on the project be received within minimum stipulated timeframe.

This must be presented to the Economic Development Unit of eThekwini Municipality and a final

should be submitted once comments are obtained. This must be accepted by the Municipality


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before it is submitted to the Provincial Department for reviews.

Once the appointment has been made, the consultant has five (5) working days to hand in the

inception report detailing the following:

Implementation schedule with milestones

Deadlines must be met; failure to do so will result in penalties and ultimately in the termination of

the contract.

11. FORMAT REQUIREMENTS FOR PROPOSALS.

MS Word to be font size 11, Arial and a line spacing of 1.0

Final report to be submitted in both hard‐copy and electronic format

Proposal and Report to be produced in A4 size

All information and reports produced as part of this work will remain the intellectual property of

the EThekwini Municipality and no duplication; interpretation; re‐use or copying of any kind, by

the consultants or any other persons, is permitted without the consent of the Municipality.

12. COPYRIGHT ON DOCUMENTS

Intellectual Property

The data and intellectual property rights arising out of this process accrues to the eThekwini

Municipality and cannot be used without prior permission from the Council. This includes all

information related to the project.

13. PROJECT BUDGET AND DISBURSEMENT

The consultant is to prepare a detailed budget breakdown for the full scope of deliverables

including all disbursements and VAT. Cost competitiveness and Empowerment will be scored in

the final stage of adjudication. Allowance and estimates must be provided for any anticipated

specialist studies. Previous studies already undertaken will be made available to the appointed

consultant:


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14. METHOD OF PAYMENT

Payment terms and contractual arrangements will be discussed with the selected service provider prior

to a letter of appointment. Final payment will be paid on full completion of the project and the receipt

of the final report.

15. SPECIFICATION AND PROCUREMENT PRIORITIES

The following requirements must be adhered to as part of the procurement process:

Adherence to the brief: The proposal submitted should acknowledge and indicate that the

brief is clearly understood, must show originality, and should warrant that the service

provider has skills and ability to deliver on the project.

Competency and experience: An indication of experience in similar projects and level of

expertise in the project should be clearly stated.

Capacity and capability: Capacity to deliver the required quality within the specific time

frames without compromising the quality.

PDI and BEE status: Company status in terms of empowerment PDI and BEE

Price: Overall budget of the project.

Registration with Municipality database: The service provider must be registered on the

Municipality database and provide a PR number and a JDE registration number on the

proposal.

Submission: For copies of the proposals must be submitted and the service provider must

attach the following documents to their proposals

Certificate of independent Bid Determination

Municipal Fees Declaration Form

Declaration of interest form

Empowerment profile (BBBEE Certificate)

A current tax clearance certificate.

These terms of reference are subject to any changes which may stem from a negotiation of the final

terms with the consultant(s), as well as any additional budget which may be allocated to the project.

Payment arrangements will be negotiated on the basis of the completion of project milestones and will

be outlined in the letter of appointment. Final payment will be paid on full completion of the project and

the receipt of the final report.


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16. TAX CLEARANCE AND BROAD BASED BLACK ECONOMIC EMPOWERMENTCERTIFICATE

Proposals must include with their submission a valid Tax Clearance and Broad Based Black Economic

Empowerment certificate (or a letter from the Company Auditors stating that the company’s turnover is

less than R5 million).

Submissions will not be accepted without a valid tax clearance and broad‐based Black economic

empowerment rating certificate (or a letter from the Company Auditors stating that the company’s

turnover is less than R5 million).

17. CONFIDENTIALITY

All the products must be made available in the way stated above and the following must also be noted:

All data, information and concepts developed during this course of this appointment whether direct

or incidental remains the property of the eThekwini Municipality;

Information which would come out of this process is to be treated as confidential and can only be

released with the permission of the eThekwini Municipality.

The consultant is accountable to the Senior Manager Traffic Engineering and will work under the

direction of the Project Steering Committee.

18.SUBMISSION OF PROPOSALS

Sealed proposals (including all required documentation) are to be hand delivered at the Tender Box located in the reception area, OF THE MATERIALS MANAGEMENT BUILDING, CORPORATE PROCUREMENT(MATERIALS MANAGEMENT) ARCHIE GUMEDE PLACE, OLD FORT COMPLEX(AND NOT TO ANY OTHER DEPT) Durban, 4001 before 11h00am, on 15 February 2017. All envelopes must be clearly marked “Request for

Proposals 7G – 32233 FEASIBILITY STUDY &BUSINESS PLAN: BRIDGE CITY BUSINESS INCUBATOR .No late

submissions will be accepted.

19. PROPOSAL DEADLINE

Proposals must be submitted for consideration by: 15 February 2017, before 11H00am.

For further information about this project please contact:

Mrs Sinovuyo Makongwana

Project Manager: Economic Development Unit


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Tel: (031) 311 4782

Cell: 07 887 3367

Email: [email protected]

I, ______________________________________________________________________________________________________ (Full Name and Surname) ID Number in my capacity as the duly authorised member / director / owner or partner of ___________________________________________________________________________________________________ (Full name of Company / Close Corporation / partnership / sole proprietary/Joint Venture ) hereinafter referred to as the TENDERER

do hereby declare that all Municipal charges of the aforesaid TENDERER, are, as at the date hereunder, fully paid or an

Acknowledgement of Debt has been concluded with the Municipality to pay the said charges in installments. The following account details relate to property of the said TENDERER:

ACCOUNT ACCOUNT NUMBER ELECTRICITY ____________________________

WATER ____________________________

RATES ____________________________

OTHER (specify) ____________________________

I acknowledge that should the aforesaid Municipal charges fall into arrears, the Municipality may take such remedial action as is

required, including termination of any contract, and any payments due to the Contractor by the Municipality shall be first set off

against such arrears. ATTACHED please find copies of the above account’s and or agreements signed with the municipality.

• Where the TENDERER’S place of business or business interests are outside the jurisdiction of eThewini municipality,

a copy of the accounts/agreements from the relevant municipality must be attached.

• Where the tenderer’s Municipal Accounts are part of their lease agreement, then a copy of the agreement, or official letter

to that effect is to be attached.

_______________________ __________________________ _________________

Full Name and Surname Signature Date

_______________________ _________________________ ___________________ Designation Company Stamp Contact No

Ethekwini Revenue Florence Mkhize Building

251 Anton Lembede Street Durban

4001

Tel: 031 328 1200 Fax: 031 328 1002

E-Mail: [email protected] Website: http://www.durban.gov.za

DECLARATION OF MUNICIPAL CHARGES

FROM TENDERER

MBD 2

TAX CLEARANCE CERTFICATE 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 bidder’s tax obligations. 1 In order to meet this requirement bidders are required to complete in full the attached form TCC 001

“Application 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 eFiling. In order to use this provision,

taxpayers will need to register with SARS as eFilers through the website www.sars.gov.za.

MBD 4

DECLARATION OF INTEREST

1. No bid will be accepted from persons in the service of the state∗.

2. Any person, having a kinship with persons in the service of the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism,

should the resulting bid, or part thereof, be awarded to persons connected with or related to persons in

service of the state, it is required that the bidder or their authorised representative declare their position in

relation to the evaluating/adjudicating authority and/or take an oath declaring his/her interest.

3 In order to give effect to the above, the following questionnaire must be completed and submitted

with the bid.

3.1 Full Name: …………………………………………………………………………

3.2 Identity Number: …………………………………………………………………

3.3 Company Registration Number: …………………………………………………

3.4 Tax Reference Number: …………………………………………………………

3.5 VAT Registration Number: ………………………………………………………

3.6 Are you presently in the service of the state∗∗∗∗ YES / NO

3.6.1 If so, furnish particulars.

………………………………………………………………

………………………………………………………………

3.7 Have you been in the service of the state for the past YES / NO

twelve months?


………………………………………………………………

………………………………………………………………

∗∗∗∗ MSCM Regulations: “in the service of the state” means to be –

(a) a member of –

(i) any municipal council;

(ii) any provincial legislature; or

(iii) the national Assembly or the national Council of provinces;

(b) a member of the board of directors of any municipal entity;

(c) an official of any municipality or municipal entity;

(d) an employee of 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);

(e) a member of the accounting authority of any national or provincial public entity; or

(f) an employee of Parliament or a provincial legislature.

2

3.8 Do you, have any relationship (family, friend, other) with

persons in the service of the state and who may be involved

with the evaluation and or adjudication of this bid?


………………………………………………………………

………………………………………………………………

3.9 Are you, aware of any relationship (family, friend, other)

between a bidder and any persons in the service of the

state who may be involved with the evaluation and or

adjudication of this bid?

3.9.1 If so, furnish particulars

…………………………………………………………….

…………………………………………………………….

YES / NO

YES / NO

3.10 Are any of the company’s directors, managers, principal YES / NO

shareholders or stakeholders in service of the state?


………………………………………………………………

………………………………………………………………

3.11 Are any spouse, child or parent of the company’s directors, YES / NO

managers, principal shareholders or stakeholders in service

of the state?


………………………………………………………………

………………………………………………………………

3

CERTIFICATION

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

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS CORRECT. I ACCEPT THAT THE STATE MAY ACT AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………….. ……………………………………..

Signature Date

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

Position Name of Bidder

MBD 5

DECLARATION FOR PROCUREMENT ABOVE R10 MILLION (ALL APPLICABLE TAXES INCLUDED)

For all procurement expected to exceed R10 million (all applicable taxes included), bidders must complete the following questionnaire:

1 Are you by law required to prepare annual financial statements for auditing?

1.1 If yes, submit audited annual financial statements for the

past three years or since the date of establishment if

established during the past three years.

………………………………………………………………

………………………………………………………………

2 Do you have any outstanding undisputed commitments for

municipal services towards any municipality for more than three months or any other service provider in respect of

which payment is overdue for more than 30 days?

2.1 If no, this serves to certify that the bidder has no undisputed

commitments for municipal services towards any municipality

for more than three months or other service provider in

respect of which payment is overdue for more than 30 days.

2.2 If yes, provide particulars.

………………………………………………………………

……………………………………………………………….

……………………………………………………………….

……………………………………………………………..

* Delete if not applicable

*YES / NO

*YES / NO

3 Has any contract been

awarded to you by an organ

of state during the past five

years, including particulars

of any material non-

compliance or dispute

concerning the execution of

such contract?

2

3.1 If yes, furnish particulars

……………………………………………………………….

……………………………………………………

*YES / NO

4. Will any portion of goods or services be sourced from outside *YES / NO the Republic, and, if so, what portion and whether any portion

of payment from the municipality / municipal entity is expected to be

transferred out of the Republic?

4.1 If yes, furnish particulars

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

CERTIFICATION

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

CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS CORRECT. I ACCEPT THAT THE STATE MAY ACT AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………….. ……………………………………..

Signature Date

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

Position Name of Bidder

MBD 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/not exceed R1 000 000 (all applicable taxes included) and

therefore the……………………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.

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

1.3.1.1 PRICE ………….. 1.3.1.2 B-BBEE STATUS LEVEL OF CONTRIBUTION …………... Total points for Price and B-BBEE must not exceed 100

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.

2. DEFINITIONS 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

2on 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;

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; 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 an 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;

2.15 “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;

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 3.1 The intention is to award the contract to the bidder obtaining the highest number of total points. 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.

33.4 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

−−=

min

min180

P

PPtPs or

−−=

min

min190

P

PPtPs

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 Contributor

Number of points

(90/10 system)

Number of points

(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 contributor 0 0

5.2 Bidders who qualify as EMEs in terms of the B-BBEE Act must submit a certificate issued by an

4Accounting 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 IRBA’s 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.

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 1.3.1.2 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

an Accounting Officer as contemplated in the CCA).

8 SUB-CONTRACTING 8.1 Will any portion of the contract be sub-contracted? YES / NO (delete which is not applicable)

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? YES / NO (delete which is not applicable)

9 DECLARATION WITH REGARD TO COMPANY/FIRM 9.1 Name of firm : .............................................................................................

9.2 VAT registration number : .............................................................................................

59.3 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 MUNICIPAL INFORMATION Municipality where business is situated ………………………………………………………………….. Registered Account Number ……………………………. Stand Number ………………………………………………. 9.8 TOTAL NUMBER OF YEARS THE COMPANY/FIRM HAS BEEN IN BUSINESS? ……………………………………

9.9 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; (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

6shareholders 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 BIDDER(S) 2. ……………………………………… DATE:……………………………….. ADDRESS:………………………….. ….……………………………………. ………………………………………. …………….…………………………

1

MBD 6.2

DECLARATION CERTIFICATE FOR LOCAL PRODUCTION AND CONTENT

This Municipal Bidding Document (MBD) must form part of all bids invited. It contains general information and serves as a declaration form for local content (local production and local content are used interchangeably). Before completing this declaration, bidders must study the General Conditions, Definitions, Directives applicable in respect of Local Content as prescribed in the Preferential Procurement Regulations, 2011 and the South African Bureau of Standards (SABS) approved technical specification number SATS 1286:201x. 1. General Conditions 1.1. Preferential Procurement Regulations, 2011 (Regulation 9.(1) and 9.(3) make

provision for the promotion of local production and content. 1.2. Regulation 9.(1) prescribes that in the case of designated sectors, where in the

award of bids local production and content is of critical importance, such bids must be advertised with the specific bidding condition that only locally produced goods, services or works or locally manufactured goods, with a stipulated minimum threshold for local production and content will be considered.

1.3. Regulation 9.(3) prescribes that where there is no designated sector, a specific

bidding condition may be included, that only locally produced services, works or goods or locally manufactured goods with a stipulated minimum threshold for local production and content, will be considered.

1.4. Where necessary, for bids referred to in paragraphs 1.2 and 1.3 above, a two stage

bidding process may be followed, where the first stage involves a minimum threshold for local production and content and the second stage price and B-BBEE.

1.5. A person awarded a contract in relation to a designated sector, may not sub-

contract in such a manner that the local production and content of the overall value of the contract is reduced to below the stipulated minimum threshold.

1.6. The local content (LC) as a percentage of the bid price must be calculated in

accordance with the SABS approved technical specification number SATS 1286: 201x as follows:

LC = 1 x 100 Where

x imported content y bid price excluding value added tax (VAT)

Prices referred to in the determination of x must be converted to Rand (ZAR) by using the exchange rate published by the South African Reserve Bank (SARB) at 12:00 on the date, one week (7 calendar days) prior to the closing date of the bid as required in paragraph 4.1 below.

1.7. A bid will be disqualified if:

• the bidder fails to achieve the stipulated minimum threshold for local production and content indicated in paragraph 3 below; and.

2

• this declaration certificate is not submitted as part of the bid documentation.

2. Definitions 2.1. “bid” includes advertised competitive bids, written price quotations or proposals; 2.2. “bid price” price offered by the bidder, excluding value added tax (VAT); 2.3. “contract” means the agreement that results from the acceptance of a bid by an

organ of state; 2.4. “designated sector” means a sector, sub-sector or industry that has been

designated by the Department of Trade and Industry in line with national development and industrial policies for local production, where only locally produced services, works or goods or locally manufactured goods meet the stipulated minimum threshold for local production and content;

2.5. “duly sign”means a Declaration Certificate for Local Content that has been signed

by the Chief Financial Officer or other legally responsible person nominated in writing by the Chief Executive, or senior member / person with management responsibility(close corporation, partnership or individual).

2.6. “imported content” means that portion of the bid price represented by the cost of

components, parts or materials which have been or are still to be imported (whether by the supplier or its subcontractors) and which costs are inclusive of the costs abroad, plus freight and other direct importation costs, such as landing costs, dock duties, import duty, sales duty or other similar tax or duty at the South African port of entry;

2.7. “local content” means that portion of the bid price which is not included in the

imported content, provided that local manufacture does take place;

2.8. “stipulated minimum threshold” means that portion of local production and content as determined by the Department of Trade and Industry; and

2.9. “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.

3. The stipulated minimum threshold(s) for local production and content for this

bid is/are as follows:

Description of services, works or goods Stipulated minimum threshold

_______________________________ _______%

_______________________________ _______%

_______________________________ _______%

4. Does any portion of the services, works or goods offered

have any imported content? YES / NO

3

4.1 If yes, the rate(s) of exchange to be used in this bid to calculate the local content as prescribed in paragraph 1.6 of the general conditions must be the rate(s) published by the SARB for the specific currency at 12:00 on the date, one week (7 calendar days) prior to the closing date of the bid.

The relevant rates of exchange information is accessible on www.reservebank.co.za.

Indicate the rate(s )of exchange against the appropriate currency in the table below:

Currency Rates of exchange US Dollar

Pound Sterling Euro Yen Other

NB: Bidders must submit proof of the SARB rate (s) of exchange used.

LOCAL CONTENT DECLARATION BY CHIEF FINANCIAL OFFICER OR OTHER LEGALLY RESPONSIBLE PERSON NOMINATED IN WRITING BY THE CHIEF

EXECUTIVE OR SENIOR MEMBER/PERSON WITH MANAGEMENT RESPONSIBILITY (CLOSE CORPORATION, PARTNERSHIP OR INDIVIDUAL)

IN RESPECT OF BID No. ................................................................................. ISSUED BY: (Procurement Authority / Name of Municipality / Municipal Entity): .........................................................................................................................

NB The obligation to complete, duly sign and submit this declaration cannot be transferred to an external authorized representative, auditor or any other third party acting on behalf of the bidder. I, the undersigned, …………………………….................................................. (full names), do hereby declare, in my capacity as ……………………………………… ……….. of ...............................................................................................................(name of bidder entity), the following:

(a) The facts contained herein are within my own personal knowledge. (b) I have satisfied myself that the goods/services/works to be delivered in terms of the above-specified bid comply with the minimum local content requirements as specified in the bid, and as measured in terms of SATS 1286. (c) The local content has been calculated using the formula given in clause 3 of SATS 1286, the rates of exchange indicated in paragraph 4.1 above and the following figures:

Bid price, excluding VAT (y) R

Imported content (x) R

Stipulated minimum threshold for Local content (paragraph 3 above)

Local content % as calculated in terms of SATS 1286

If the bid is for more than one product, a schedule of the local content by product shall be attached.

4

(d) I accept that the Procurement Authority / Municipality /Municipal Entity has the right to request that the local content be verified in terms of the requirements of SATS 1286. (e) I understand that the awarding of the bid is dependent on the accuracy of the information furnished in this application. I also understand that the submission of incorrect data, or data that are not verifiable as described in SATS 1286, may result in the Procurement Authority / Municipal / Municipal Entity imposing any or all of the remedies as provided for in Regulation 13 of the Preferential Procurement Regulations, 2011 promulgated under the Policy Framework Act (PPPFA), 2000 (Act No. 5 of 2000). SIGNATURE: DATE: ___________ WITNESS No. 1 DATE: ___________ WITNESS No. 2 DATE: ___________

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