Sans 294

ICS 03.100.10

SANS 294:2004

ISBN 0-626-15684-X

Edition 1

SOUTH AFRICAN NATIONAL STANDARD

Construction procurement processes, methods and procedures

Published by Standards South Africa 1 dr lategan road groenkloof private bag x191 pretoria 0001 tel: 012 428 7911 fax: 012 344 1568 international code + 27 12 www.stansa.co.za  Standards South Africa

SANS 294:2004 Edition 1 Table of changes Change No.

Date

Scope

Abstract Describes processes, methods and procedures for the establishment within an organization of a procurement system that is fair, equitable, transparent, competitive and cost-effective.

Keywords procurement, procurement documents, procurement policy, procurement procedures, procurement strategy.

Acknowledgement Standards South Africa wishes to acknowledge the valuable assistance derived from publications of the Interministerial Task Team for Construction Industry Development (1999-2000) and the Construction Industry Development Board (2002-2003). Standards South Africa also wishes to acknowledge the valuable contribution of the Joint Structural Division of the South African Institution of Civil Engineering and the Institution of Structural Engineers.

Foreword This South African standard was approved by National Committee StanSA TC 5120.61, Construction standards, in accordance with procedures of Standards South Africa, in compliance with annex 3 of the WTO/TBT agreement. Annexes E to J form an integral part of this standard. Annexes A to D are for information only.

Introduction Procurement is by definition a process (i.e. a succession of logically related actions occurring or performed in a definite manner) which culminates in the completion of a contract for the provision of engineering and construction works, supplies, services or disposals. There is a finite range of methods and procedures associated with the various procurement subprocesses. These can be captured in a single standard for common and repeated use. This standard describes the generic processes around which an organization can develop its procurement system. It also describes standard methods and procedures which can, by reference, be adopted by organizations into their procurement systems. The processes, methods and procedures contained in this standard are based on the underlying requirement for the procurement system to be fair, equitable, transparent, competitive and costeffective. Compliance with the requirements of this standard will also result in a procurement system that is predictable and ensures equal treatment of tenderers.

SANS 294:2004 Edition 1

Contents Page Abstract Keywords Acknowledgement Foreword Introduction 1 Scope .....................................................................................................................................

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2 Normative references .............................................................................................................

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3 Definitions ..............................................................................................................................

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4 Establishing a procurement system .......................................................................................

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5 Preparing for procurement ..................................................................................................... 12 6 Procurement methods and procedures ................................................................................. 14 Annex A (informative) A generic procurement process ........................................................... 34 Annex B (informative) Selecting a standard procurement procedure ...................................... 38 Annex C (informative) Selecting a standard form of contract ................................................... 47 Annex D (informative) Establishing a preferential procurement policy .................................... 54 Annex E (normative) Tender data .......................................................................................... 59 Annex F (normative) Standard conditions of tender .............................................................. 63 Annex G (normative) Submission data associated with the calling for expressions of interest ……………………………………………….. . 73 Annex H (normative) Standard conditions for the calling for expressions of interest………… 76 Annex I (normative) Form of offer and acceptance…………………………………………….. 80 Annex J (normative) Principles for adjudication…………………………………………………. 84 Bibliography .............................................................................................................................. 86

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SANS 294:2004 Edition 1

Construction procurement processes, methods and procedures

1 Scope This standard describes processes, methods and procedures for the establishment within an organization of a procurement system that is fair, equitable, transparent, competitive and costeffective. This standard a) describes generic procurement processes around which an organization may develop its procurement system; b) establishes minimum requirements for the conduct of an organization’s employees, agents, board members and office bearers when engaging in procurement; c) establishes the framework for the development of an organization’s procurement policy including any preferential procurement policy; d) establishes generic methods and procedures for procurements including those pertaining to disposals; and e) provides standard conditions of tender and conditions for the calling for expressions of interest.

2 Normative references The following standards contain provisions which, through reference in this text, constitute provisions of this standard. All standards are subject to revision and, since any reference to a standard is deemed to be a reference to the latest edition of that standard, parties to agreements based on this standard are encouraged to take steps to ensure the use of the most recent editions of the standards indicated below. Information on currently valid national and international standards can be obtained from Standards South Africa. SANS 1914-1, Targeted construction procurement – Part 1: Participation of targeted enterprises. SANS 1914-2, Targeted construction procurement – Part 2: Participation of targeted partners in joint ventures. SANS 1914-3, Targeted construction procurement – Part 3: Participation of targeted enterprises and targeted partners in joint ventures. SANS 1914-4, Targeted construction procurement – Part 4: Participation of targeted enterprises and targeted labour (local resources). SANS 1914-5, Targeted construction procurement – Part 5: Participation of targeted labour.

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SANS 294:2004 Edition 1 SANS 1914-6, Targeted construction procurement – Part 6: Participation of targeted enterprises in concession contracts. SANS 10396, Implementing preferential construction procurement policies using targeted procurement procedures. SANS 10403, Formatting and compilation of construction procurement documents.

3 Definitions For the purposes of this standard, the definitions given in SANS 10403 and the following definitions apply: 3.1 adjudication accelerated and cost-effective form of dispute resolution where, unlike other means of resolving disputes involving a third-party intermediary, the outcome is a decision by a third party which is binding on the parties in dispute and is final unless and until reviewed by either arbitration or litigation 3.2 agent natural or juristic person or partnership that is not an employee of the employer and that acts on the employer’s behalf 3.3 arbitration method of resolving disputes between two or more parties by reference to one or more persons appointed for that purpose, in accordance with procedures laid down by law 3.4 bond sum of money or securities submitted to the employer or placed in the hands of a third party to guarantee completion of the work and recovery of the sums which the contractor would be recognized as owing in terms of the contract 3.5 comparative offer tenderer’s financial offer after the factors of non-firm prices, all unconditional discounts and any other tendered parameters that will affect the value of the financial offer have been taken into consideration 3.6 contracting strategy strategy which is adopted to procure supplies, services, or engineering and construction works, to hire or let anything, to undertake disposals or to operate a concession in the most advantageous and cost-effective manner 3.7 corrupt practice offering, giving, receiving or soliciting of anything of value to influence the action of the employer or his staff or agents in the tender process 3.8 disposal divestiture of assets, including intellectual property, and other rights and goodwill by any means, including sale, rental, lease, license, tenancy, franchise, auction or any combination thereof

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SANS 294:2004 Edition 1 3.9 expression of interest request for tenderers to register their interest in undertaking a specific contract or to participate in a project or programme and to submit their credentials so they may, in terms of the organization’s procurement procedures, be invited to submit a tender offer should they qualify or be selected to do so 3.10 fraudulent practice misrepresentation of the facts in order to influence the tender process or the award of a contract arising from a tender offer to the detriment of the employer, including collusive practices intended to establish prices at artificial levels 3.11 joint venture grouping together of two or more tenderers who jointly and severally undertake to perform a contract 3.12 litigation system by which the advocates representing each side adduce arguments in a court of law to persuade the tribunal (judge, jury or assessors) that they have the better legal case 3.13 mediation form of dispute resolution involving a third-party intermediary that is intended to produce an agreement or conciliation between the parties to a contract 3.14 method documented, systematically ordered collection of rules or approaches 3.15 organization company, firm, enterprise, association or other legal entity, whether incorporated or not, or a public body 3.16 price financial offer 3.17 price adjustment specific method of calculating the amount to be added or to be deducted from the contract sum by way of allowances for increases or decreases in the costs of labour, plant and materials occurring during the performance of the contract, using a price variation formula 3.18 pricing strategy strategy which is adopted to secure prices and to remunerate contractors in terms of the contract 3.19 principal owner, director or office bearer

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SANS 294:2004 Edition 1 3.20 procedure formal steps to be taken in the performance of a specific task, which may be evoked in the course of a process 3.21 process succession of logically related actions occurring or performed in a definite manner which culminates in the completion of a major deliverable or the attainment of a milestone 3.22 procurement process which creates, manages and fulfils contracts relating to the provision of supplies, services, engineering and construction works or disposals or any combination thereof 3.23 procurement procedure selected procedure for a specific procurement NOTE Specific procedures provided in terms of this standard may be described as negotiated, nominated, qualified, open, quotation, proposal or shopping (see table 1).

3.24 procurement strategy selected contracting, pricing and targeting strategy and procurement procedure for a particular procurement 3.25 project contract or a series of related contracts 3.26 quality totality of features and characteristics of a product or service that bears on the ability of the product or service to satisfy stated or implied needs 3.27 respondent natural or juristic person or partnership that submits an expression of interest in response to an invitation to do so 3.28 risk assessment assessment performed when evaluating tender offers to determine the commercial and other risks posed thereby 3.29 system organized scheme or plan of action or an orderly or regular procedure or method 3.30 targeting strategy approach which is adopted in procurement to implement a preferential procurement policy

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SANS 294:2004 Edition 1

4 Establishing a procurement system 4.1 General 4.1.1 An organization shall develop and document its procurement system around a process which commences once the need for procurement is identified and ends when the transaction is completed. Such a process shall include the attainment of procedural milestones which enable the system to be controlled and managed. 4.1.2 The organization’s executive shall designate persons to undertake the actions associated with the attainment of procedural milestones. NOTE Annex A provides a generic procurement process which incorporates activities linked to procedural milestones. The procurement system should be developed around this generic process. Separate processes might (but not necessarily) be required for different categories of procurement e.g. disposals, services, supplies and engineering and construction works.

4.2 Conduct of employees, agents and contractors 4.2.1 The organization shall establish a code of conduct for procurement to regulate the actions of its employees, agents, public office bearers or board members. Such a code shall, as a minimum, require that these persons a) discharge their duties and obligations timeously and with integrity, b) behave equitably, honestly and transparently, c) avoid conflicts of interest, and d) not maliciously or recklessly injure or attempt to injure the reputation of another party. NOTE The standard conditions of tender require both the employer and each tenderer to discharge their duties and obligations timeously and with integrity, and to behave equitably, honestly and transparently.

4.2.2 Organizations shall discipline their employees, agents, public office bearers or board members who contravene the requirements of their code of conduct for procurement. 4.2.3 Organizations may place contractors or their principals (or both) who have engaged in corrupt and fraudulent practices under restrictions from participating in the organization’s procurement for periods of time. Contractors and persons placed under restrictions shall be advised of the restriction and the reason therefor.

4.3 Procurement policy The organization’s executive shall develop and document a procurement policy which shall, as a minimum, establish a) which of the standard procurement procedures listed in table 1 and described in 6.3 shall apply to which categories of procurement and under which circumstances (see annex B), b) the manner in which procurements, including disposals, shall be managed and controlled, c) the organization’s preferential procurement policy, if any, in accordance with the requirements of 4.4, d) requirements for recording and reporting,

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SANS 294:2004 Edition 1 e) requirements for managing risks, f) the grounds upon which the organization may in terms of 6.7.1(e) decline to enter into a contract, if any, NOTE Public bodies may regard not being in good standing, insofar as tax obligations or employment are concerned, as being sufficient grounds to decline to enter into a contract.

g) the functioning and composition of the organization’s tender evaluation committee, NOTE It may be preferable to appoint panels comprising persons who are not members of a tender committee to evaluate quality in tender submissions. The manner in which quality is to be scored by such persons should be described.

h) the organization’s procedures for placing contractors and persons under procurement restrictions, i)

advertising arrangements for the calling for tender submissions and expressions of interest,

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which standard forms of contract (see annex C) and industry standards are to be incorporated by reference in procurement documents,

k) levels of retention and bonds in the various categories of procurement, if any, l)

insurance arrangements, if any,

m) the cost of procurement documents (see 6.5.1.2), and n) the authorized percentage increase in the final contract amount (see 6.8.3). Table 1 — Standard procurement procedures 1

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Designation

Description

Negotiated procedure

Tender offers are solicited from a single tenderer.

Nominated procedure

Tenderers that satisfy prescribed criteria are entered into an electronic database. Tenderers are invited to submit tender offers based on search criteria and their position in the database. Tenderers are repositioned in the database upon appointment or upon submission of a tender offer.

Open procedure

Tenderers may submit tender offers in response to an advertisement by the organization.

Qualified procedure

A call for expressions of interest is advertised and thereafter only those tenderers who have expressed interest, satisfy objective criteria and who are selected to submit tender offers, are invited to do so.

Quotation procedure

Tender offers are solicited from not less than three tenderers in any manner the organization chooses, subject to the procedures being fair, equitable, transparent, competitive and cost-effective.

Proposal procedure using the two-envelope system

Tenderers submit technical and financial proposals in two envelopes. The financial proposal is only opened should the technical proposal be found to be acceptable.

Proposal procedure using the two-stage system

Non-financial proposals are called for. Tender offers are then invited from those tenderers that submit acceptable proposals based on revised procurement documents. Alternatively, a contract is negotiated with the tenderer scoring the highest number of evaluation points.

Shopping procedure

Written or verbal offers are solicited in respect of readily available supplies obtained from three sources. The supplies are purchased from the source providing the lowest price once it is confirmed in writing.

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SANS 294:2004 Edition 1 4.4 Preferential procurement policy 4.4.1 General requirements 4.4.1.1 The organization’s executive shall develop and document the organization’s preferential procurement policy (see annex D) which, as a minimum, shall establish a) policy themes, b) the specific goals, subject to the requirements of 4.4.1.2, that are to be pursued, such as those pertaining to the promotion of the participation of targeted enterprises and targeted labour, job creation, local economic development, business equity, sustainable development, quality standards and environmental standards, c) targeting strategies, d) the means by which the goals are to be monitored for contract compliance, and e) recording and reporting requirements. NOTE When formulating specific goals, consideration should be given to measures to prevent fraudulent practices, the application of sanctions as an instrument to promote compliance and the implementation of supply side interventions (see SANS 10396).

4.4.1.2 Goals that are established in the preferential procurement policy shall be capable of being measured, verified and audited and shall be achievable within the contract period, unless specific arrangements are put in place to monitor and enforce compliance after the contract has been completed, or shall be measured before the award of a contract and maintained for the duration of the contract. 4.4.1.3 Goals shall not relate to compliance with laws as tenderers may not be rewarded for complying with the law. They should rather be penalized for not doing so. 4.4.1.4 Preferential procurement policies shall, subject to prevailing legislation, be implemented by using one or more of the following methods in accordance with the requirements of 4.4.2: a) preferences at the short-listing stage; b) accelerated rotation in an electronic database where the nominated procedure is used; c) tender evaluation criteria; and d) breaking down (unbundling) of projects into smaller contracts to facilitate the participation of targeted enterprises.

4.4.2 Requirements for the implementation of preferential procurement policies 4.4.2.1 Tenderers and respondents shall be advised of all preferences offered by the employer in relation to a particular procurement, the conditions relating thereto and the manner in which the preferences shall be evaluated. 4.4.2.2 The weighting between preferences and other factors at the short-listing stage shall be fair and equitable and shall not be used as a means to reserve contracts for those respondents that are preferred in terms of the organization’s preferential procurement policy.

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SANS 294:2004 Edition 1 4.4.2.3 Accelerated rotations in databases shall be provided in accordance with the provisions of SANS 10396. The formulation for accelerating work opportunities for targeted enterprises shall be such that non-targeted enterprises obtain a reasonable opportunity to tender for work. 4.4.2.4 The breaking down of projects into smaller contracts shall only be undertaken when: a) there is administrative capacity to administer the increased number of contracts that result from the unbundling of the project; and b) the unbundling does not result in an inappropriate division of responsibilities, increased contractual risk, duplication of establishment charges and under-utilization of resources. NOTE The use of some of the standards within the SANS 1914 series in accordance with the provisions of SANS 10396 can generate significant levels of targeted enterprise participation on large contracts without imposing an administrative burden or compromising the procurement in any way.

4.4.2.5 Tender evaluation points for preferences shall be granted using one of the following methods: a) award a fixed number of points for attaining a specific goal; b) award a variable number of points in proportion to the degree to which a tenderer responds to a particular goal (i.e. in proportion to the quantum of the goal offered); and c) award points on a comparative basis in terms of which: 1) the best offer received scores the maximum number of allotted points; 2) the worst offer scores no points; and 3) the remaining offers are scored between the limits of (1) and (2). NOTE 1 Methods (a) and (b) are objective and require no subjective judgements to be exercised in the quantification of the preference. The evaluation in these methods merely needs to ascertain whether or not the tenderer is eligible for a preference. Method (c), on the other hand, requires a somewhat subjective judgement to arrive at the quantum of the preference unless tenderers are required to submit contract participation goals in accordance with one of the parts of SANS 1914. Where this method is used and contract participation goals are not offered, preferences should be evaluated by a panel comprising not less than three persons. NOTE 2 The granting of too wide a range of preferences can lead to a situation whereby most tenderers become eligible for the awarding of a preference. This can undermine the thrust and intent of preferences. NOTE 3 As a general rule, the number of specific goals for which tender evaluation points are awarded should be kept to a minimum in order to a) ensure efficiency in administration and monitoring for compliance, b) promote greater clarity of requirements in procurement documents, and c) maintain focus on the primary policy objectives.

4.4.2.6 The targeting of enterprises and labour through tender evaluation criteria shall be in accordance with the provisions of SANS 10396. Enterprise declaration affidavits (see SANS 10396) or statements certified by an auditor should be used to determine the eligibility of tenderers for preferences pertaining to the structure or the internal workings of the contracting entity. 4.4.2.7 Preferences awarded in respect of the structure of the contracting entity shall be subject to the tenderer undertaking to maintain their structure within nominated requirements for the duration of the contract and to limit the quantum of work subcontracted to firms not eligible for preferential treatment.

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SANS 294:2004 Edition 1 4.4.2.8 Preferences relating to the targeting of enterprises on the basis of geographic locations shall be based on the conducting of business from premises located in defined geographic locations as evidenced from indicators such as payment of rentals or bonds for premises and payment for service charges, levies, rates and taxes to a local or regional authority. 4.4.2.9 Preferences relating to the targeting of labour on the basis of geographic locations shall be based on residency as recognized by members of the community residing within that area. 4.4.2.10 The participation of a) targeted enterprises shall be measured on the basis of payments made to such enterprises (see SANS 10396), b) targeted labour shall be measured on the basis of wages and allowance paid to such labour (see SANS 10396), and c) joint ventures involving targeted partners shall be measured on the basis of a balance between the value of work for which the targeted partner is responsible and the resources provided by such a partner (see SANS 10396). 4.4.2.11 Preferences relating to the participation of targeted enterprises and targeted labour shall be based on the attainment of contract participation goals (percentage of the value of the contract which represents the inputs of targeted enterprises and labour in the performance of the contract) as measured in accordance with the relevant part of SANS 1914. 4.4.2.12 Goals relating to development issues that are unrelated to a specific contract such as to the granting of bursaries, staff training, the provision of housing, education and transport to members of staff and their dependents, donations to community organizations, etc., shall be based on amounts paid and certified by auditors, and expressed as a percentage of audited turnover or wage bills.

4.5 Electronic databases 4.5.1 The nominated procedure may only be utilized when a policy, operational procedures and appropriate software associated with the operation of an electronic database, which are fair, equitable, transparent, competitive and cost-effective, are in place.

4.5.2 The software associated with an electronic database shall, as a minimum, be capable of a) registering enterprises in an electronic database in categories of work and, where relevant, their geographical location, b) ranking registered enterprises in the database in terms of date of entry to the system and, where applicable, their preferred status in terms of a preferential procurement policy, c) selecting a limited number of enterprises (not less than five) to submit tender offers, based on their rankings in the database and subject them to satisfying specific criteria such as locality, services offered, and specialist capabilities, d) repositioning enterprises (both successful and unsuccessful) in the database at new positions dependent on their preferred enterprise status and, if relevant, on their record of previous tender submissions, e) preventing fraudulent manipulation of the database by persons in the employ of the organization to secure nominations for registered enterprises, and f) reporting on all procurement transactions.

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SANS 294:2004 Edition 1 4.5.3 The successful tenderer shall, in the absence of any preferential procurement policy, be repositioned as the last record in the database. Unsuccessful tenderers shall, in the absence of any preferential procurement policy, be repositioned, depending upon their immediate tendering history, as follows: a) one third down from the first record in the database following their first unsuccessful tender in three successive invitations to tender; b) half way down from the first record in the database following their second unsuccessful tender in three successive invitations to tender; and c) as the last record in the database after their third unsuccessful tender in three successive invitations to tender.

4.5.4 Advertisements for entry to the database shall be published annually in a manner that enables a wide spectrum of respondents, who comply with the requirements of 6.7.1 in relation to the category of work they wish to apply for entry to the database, to be advised of the procurement opportunities presented thereby. Respondents shall be entered into the database whenever they choose to submit an application which complies with the entry requirements. The organization shall advise respondents in writing of the administrative action taken regarding their submission, i.e. whether or not they have been entered, and if not, on what grounds.

4.5.5 An organization’s entry requirements shall exclude enterprises who fail to comply with the requirements of 6.7.1 from being registered in the electronic database.

4.5.6 The particulars of respondents shall be reconfirmed at intervals not exceeding two years. The names of respondents who no longer comply with entry requirements shall be removed.

5 Preparing for procurement 5.1 Preparation for a procurement other than a disposal 5.1.1 Each time an organization undertakes a procurement, it shall commence by establishing a) the broad scope of work associated with the procurement, b) the need and justification for the procurement, c) the estimated market-related costs and benefits of the procurement, d) the resources and expertise available for the management, administration and supervision of the procurement, e) the risks associated with the procurement, f) the public authorities, if any, which need to be consulted in connection with the procurement, g) the preferential procurement policies, if any, which shall apply to the contract, or project, h) the appropriate contract and pricing strategy, i) the appropriate targeting strategy, j) the appropriate procurement procedure(s), and k) the funding source for the contract or project.

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SANS 294:2004 Edition 1 5.1.2 Tender offers may not be solicited unless and until a) the necessary resources to administer the contract or project have been obtained or put in place, b) all the necessary organizational approvals for the project or contract have been obtained, c) organizational approval has been obtained for the selected contract and pricing strategy, for the procurement procedure, and where a preferential procurement policy is to be pursued, for the targeting strategy, d) all necessary feasibility studies and preliminary investigations, commensurate with the selected contract strategy have been completed, e) all the necessary and appropriate procurement documents have been prepared, f) the need for the procurement, the financial and technical viability of the proposed procurement, and the organization’s firm intention of proceeding with the procurement is confirmed, and g) the funding for or the arrangements for the financing of the contract or project are in place.

5.1.3 The organization shall keep written records of all decisions and determinations made in accordance with 5.1.1 and 5.1.2 as well as the reasons and details relating thereto.

5.2 Preparation for a disposal 5.2.1 Each time an organization intends to undertake a disposal, it shall commence by establishing a) the need and justification for the disposal, b) the estimated market-related costs and benefits of the disposal, c) the resources and expertise available for the management, administration and supervision of the disposal, d) the risks associated with the disposal, e) the appropriate procurement procedure, f) the preferential procurement policies which will apply to the disposal, and g) the appropriate procurement strategy for the disposal.

5.2.2 A disposal may not be proceeded with unless and until a) all the necessary approvals for the disposal have been obtained from the organization’s executive, b) all relevant legislation has been complied with, c) an appropriate disposal procedure and, where a preferential procurement policy is to be pursued, a targeting strategy (strategies), have been decided upon, d) the total revenue which might be realized through the proposed disposal has been estimated, e) all necessary and appropriate procurement documentation has been prepared in accordance with the requirements of 6.2, insofar as the requirements can be applied,

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SANS 294:2004 Edition 1 f) the need and justification for the proposed disposal have been confirmed, and g) the organization’s firm intention of proceeding with the disposal has been established.

5.2.3 The organization shall make and keep records of all decisions made in respect of 5.2.1 and 5.2.2. NOTE Transactions involving the disposal of fixed and moveable assets should realize market-related prices.

6 Procurement methods and procedures NOTE 1 The methods and procedures for procurements are generic in nature and are not specific to a category of procurement i.e. services, supplies or engineering and construction works. Some methods may, however, be more frequently used than others as they might be better suited to a particular category of contract. NOTE 2 The relationship between the procurement procedures contained in this clause and those advocated by the World Bank, the World Bank Organization and the United Nations Commission on International Trade Law is described in table B.1.

6.1 General 6.1.1 As a general rule, agents and contractors that are commissioned to prepare a scope of work for a particular procurement shall be precluded from submitting tender offers for that procurement. NOTE Agents and contractors who prepare the scope of work for engineering and construction works contracts where the design and build contracting strategy is adopted, may submit tender offers to perform such work.

6.1.2 Tenderers may submit tenders as a joint venture, provided that, before the contract is awarded to the joint venture, all the partners enter into a joint venture agreement which jointly and severally binds the partners to perform the contract. However, where the qualified procedure is used, short-listed respondents who elect to enter joint ventures after the short-listing stage shall, if required in terms of the tender data, obtain the organization’s permission to do so. 6.1.3 In the event that a tender is not awarded for reasons other than that all non-financial proposals solicited in the proposal procedure fail to comply with the requirements, an organization or its agents shall not call for fresh tenders covering substantially the same scope of work within six months of the closing date of the original tender. 6.1.4 Any negotiations or discussions with respondents or tenderers shall be conducted in an open, competitive, transparent and fair manner. 6.1.5 An organization shall be justified in rejecting all tender submissions only if such submissions are non-responsive and are unsuitable either because they do not fully comply with requirements or involve costs substantially higher than the budget.

6.2 Procurement documentation 6.2.1 General requirements 6.2.1.1 Procurement documents shall be prepared in accordance with the organization’s procurement policy and the provisions of SANS 10403. The tender data shall be prepared in accordance with the provisions of annex E and incorporate, by reference, the standard conditions of tender contained in annex F.

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SANS 294:2004 Edition 1 6.2.1.2 Any eligibility criteria introduced into the tender data shall not introduce criteria additional to those listed in 6.7.1 and shall generally be based on the demonstration of the following, as necessary: a) professional and technical qualifications; b) professional and technical competence; c) financial resources; d) equipment and other physical facilities; e) managerial capacity, reliability, experience; and f) reputation. 6.2.1.3 Calls for expressions of interest shall be prepared in accordance with the provisions of annex G and incorporate, by reference, the standard conditions for the calling for expressions of interest contained in annex H. Where submissions are used to establish a tenderer’s eligibility to submit a tender offer, respondents shall be requested in such documents to demonstrate their qualifications in relation to the appropriate requirements of 6.7.1. 6.2.1.4 Procurement documents shall be prepared in English, unless the organization’s executive directs that it may be prepared in another language. 6.2.1.5 The form of offer and acceptance given in I.1 and I.2 shall be incorporated into procurement documents with minimal contract-specific amendments. The schedule of deviations provided in I.3 should only be provided where the organization requires an audit trail of the amendments to the procurement document agreed to before the formation of a contract. NOTE The form of offer and acceptance becomes an agreement when accepted unconditionally by both parties.

6.2.1.6 The scope of work shall, wherever possible, be a) described in terms of performance rather than the design of descriptive characteristics, and b) based on national or international standards, where such exist. 6.2.1.7 Contract requirements in the form of specifications, plans, drawings, designs, testing and test methods, packaging, marking or labelling or conformity certification shall not create trade barriers. Reference to any particular trade mark, name, patent, design, type, specific origin or producer shall not be made unless there is no other sufficiently precise or intelligible way of describing the characteristics of the work. Such reference shall be accompanied by the words "or equivalent". 6.2.1.8 The evaluation criteria, including the weightings attached to any points scoring system, shall be stated in the procurement documents. (See 6.6.) 6.2.1.9 Procurement documents shall contain provisions for a) price adjustments, should the contract period exceed one year, and b) interest, at the contractor's bank prime interest rate, on monies due to the contractor, which are not paid within 30 d of being due, to deter late payment. 6.2.1.10 Contracts should preferably provide for the resolution of disputes by adjudication in accordance with the principles established in annex J.

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SANS 294:2004 Edition 1 6.2.1.11 Contracts involving reimbursements on the basis of time and costs or on the basis of cost plus a fee for profit and overheads shall be structured such that a) expenditure can be readily audited, b) reimbursable costs are at market or competitively tendered prices, c) the end costs of the contract can be continuously tracked and reported on at regular intervals, and d) within a short time after the completion of the contract, the final contract amount is known and can be settled. 6.2.1.12 Requirements for delivery periods that are incorporated into procurement documents shall be consistent with the organization’s reasonable needs and shall take into account factors such as the complexity of the intended procurement and realistic time frames for completing the work.

6.2.2 Requirements relating to preferencing 6.2.2.1 Goals shall be in accordance with the organization’s procurement policy and the relevant provisions of 4.4.2. 6.2.2.2 Procurement documents shall specify goals in an unambiguous manner and include the means by which such goals may be measured, quantified, verified and audited. In this regard, procurement documents shall require the submission of sufficient information to enable claims for preferences to be evaluated at the tender stage and to document undertakings in the subsequent contract so that they can be monitored for compliance. 6.2.2.3 Procurement documents should provide sanctions to enable compliance to be encouraged or enforced. NOTE SANS 10396 provides guidance as to how requirements for preferences can be incorporated in procurement documents. It is possible to prepare comprehensive preferencing schedules, which establish all the requirements and undertaking required to claim a preference, respectively. Where such schedules are issued with tenders and incorporated in the scope of work in the contract, all the issues that need to be captured in the contract can be incorporated in such schedules.

6.2.3 Requirements relating to quality 6.2.3.1 The manner in which quality is to be ensured shall be incorporated in procurement documents using one or more of the following methods: a) the full and unambiguous specification of requirements in the scope of work; b) taking cognizance of whole-life costing in the financial evaluation of tender offers; c) where exceptional quality is required, making use of the qualified procurement procedure and ensuring that respondents who are invited to submit tender offers are, in terms of 6.7.1, suitably qualified to do so; d) requiring tenderers to submit plans for monitoring and applying quality management principles in the performance of their contracts; e) introducing quality into the eligibility criteria; f) establishing a category of preference for quality in the evaluation of tenders; or g) evaluating selected quality criteria as an integral part of the tender offer.

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SANS 294:2004 Edition 1 6.2.3.2 Quality may only be introduced into the evaluation of tender submissions where it is required to achieve policy objectives in terms of an organization’s procurement policy or it is justifiable in terms of procurement outcomes (see figure 1). NOTE 1 Figure 1 shows the relationship between price and quality and the nature of the procurement. The scoring of quality is recommended only in respect of specialist work or in partnering approaches where the price is dependent on the quality offered. The recommendations contained in figure 1 are particularly appropriate for professional services – a subcategory of procurement that demands that quality be considered in the award of contracts. NOTE 2 Preferences for quality should be provided to reward tenderers for achieving quality standards or good performance on previous contracts performed for the organization or to encourage accreditation of certification in best practices. NOTE 3 The framing of quality criteria as eligibility criteria is a simple, yet effective, means of ensuring that only those tenderers who are likely to deliver the required quality submit tenders and compete for the award of a contract.

6.2.3.3 Quality measures shall not promote captive markets and should result in quality that is appropriate to comply with user requirements as opposed to the best quality available. 6.2.3.4 Quality should be based on one or more of the criteria listed in table 2, appropriate to the category of contract. 6.2.3.5 Social considerations, such as the composition of workforces in terms of race, gender or disability, shall not be included in quality criteria.

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SANS 294:2004 Edition 1

RECOMMENDED APPROACH TO THE EVALUATION OF QUALITY IN TENDER SUBMISSIONS Score tender submissions in terms of quality and price Specialist work requiring considerable innovation, creativity, and expertise or skill (or both) or work that has a high downstream impact. Partnering approaches where the scope of work is ill defined when the partners are selected.

Increasing importance of quality

QUALITY

Quality most important

Eligibility criteria

Complex work characterized by requirements for higher levels of skills, greater resources or not well-defined inputs and outputs.

Quality least important

Price least important

Award preference for quality

Simple/straightforward/routine work where the tasks/activities are of a straightforward nature in terms of which inputs are relatively well known and outputs can be readily defined.

Increasing importance of price PRICE

Figure 1 — Quality considerations and approaches to the evaluation of quality in tender submissions

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Price most important

SANS 294:2004 Edition 1 Table 2 — Quality criteria 1

2

Category of contract

Description of quality criteria

Engineering and construction works

Quality control practices and procedures which ensure compliance with stated employer’s requirements Availability of resources Capacity to mobilize own and subcontracting resources Availability of skills to manage and perform the contract (assigned personnel) Quality achievements on previous contracts of a similar nature Previous works of a similar nature Life-cycle costs

Services (including Response to (ability to relate to) the proposed scope of work/project design which professional services) establishes the manner in which the respondent or tenderer intends to perform the contract Adequacy of proposed work plan and proposed methodology Organization, logistics and support resources Availability of resources Managerial ability appropriate to the size and nature of work Control procedures Qualifications and competence of the key staff (assigned personnel) in relation to the scope of work Demonstrated experience in comparable projects Demonstrated experience with respect to specific aspects of the project Experience (familiarity) in the region, or similar regions Performance record in similar projects Quality assurance systems which ensure compliance with stated employer’s requirements Communication/facilitation skills Sound knowledge of the employer’s policies or work procedures (or both) Transfer of knowledge Supplies

Attainment of quality standards e.g. quality marks Quality assurance systems which ensure compliance with stated employer’s requirements Capacity to deliver Periods for delivery Availability of service and spare parts Safety and environmental benefits

6.3 Solicitation of tender offers 6.3.1 General 6.3.1.1 Tender offers shall be solicited in accordance with the organization’s documented procurement policy using one of the procurement procedures described in 6.3.2 to 6.3.10. 6.3.1.2 Time frames associated with the procurement procedures may only be relaxed where they cannot be adhered to due to the presence of, or the imminent risk of, an extreme or emergency situation arising from one or more of the following: a) human injury or death; b) human suffering or deprivation of human rights;

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SANS 294:2004 Edition 1 c) serious damage to property or financial loss; d) livestock or animal injury, suffering or death; e) serious environmental damage or degradation; or f) interruption of essential services. 6.3.1.3 Where the time frames are relaxed, the reason for doing so shall be recorded for audit purposes.

6.3.2 Negotiated procedure 6.3.2.1 Actions associated with other procedures shall be followed until such time that the procurement becomes a negotiated procedure. Alternatively, a single tenderer shall be issued with a procurement document, prepared in accordance with the provisions of 6.2, to serve as the basis for negotiation, allowing an adequate number of working days for an initial tender offer to be prepared. 6.3.2.2 The scope of work, terms and conditions and prices shall be negotiated in the best interests of the organization and the contract shall be awarded in accordance with the provisions of 6.7. 6.3.2.3 The reasons for pursuing this procedure shall be recorded.

6.3.3 Nominated procedure 6.3.3.1 Procurement documents shall be prepared in accordance with the provisions of 6.2. 6.3.3.2 An electronic database which complies with the requirements of 4.5 shall be used to a) nominate a sole tenderer, or b) prepare a short list of not less than five tenderers. 6.3.3.3 The contract shall be concluded as for the negotiated procedure or short-listed tenderers shall be invited to submit tenders by a prescribed date either by post, hand, telefax or by electronic means. Where quality is to be evaluated in the absence of the financial offer, one of the proposal procedures contained in 6.3.7 or 6.3.8 shall be used. 6.3.3.4 All tenders received shall be evaluated in accordance with the provisions of 6.6 and the contract shall be awarded in accordance with the provisions of 6.7. 6.3.3.5 After the award of the contract, all tenderers invited to submit tenders shall be repositioned in the electronic database established in accordance with the provisions of 4.5.

6.3.4 Open procedure 6.3.4.1 Procurement documents shall be prepared in accordance with the provisions of 6.2. 6.3.4.2 The procurement shall be advertised in accordance with the provisions of 6.4.1 and 6.4.2 and tender offers shall be closed not less than 10 working days from the date of the advertisement and not less than 7 working days from the date that the procurement documents are made available. 6.3.4.3 All tenders received shall be evaluated in accordance with the provisions of 6.6 and the contract shall be awarded in accordance with the provisions of 6.7.

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SANS 294:2004 Edition 1 6.3.5 Qualified procedure 6.3.5.1 Procurement documents shall be prepared in accordance with the provisions of 6.2. 6.3.5.2 Expressions of interest shall be advertised for in accordance with the provisions of 6.4.1 and 6.4.3 and receipt of expressions of interest shall be closed not less than 10 working days from the date of the advertisement. 6.3.5.3 Submissions shall be evaluated in the manner stated in the submission data. Such evaluations shall not result in the exclusion of respondents who comply with the requirements of 6.7.1 and may include the evaluation of quality and preferences, if any, provided that respondents scoring the highest scores are short-listed. 6.3.5.4 A short list of not less than five respondents shall be prepared. 6.3.5.5 All short-listed respondents shall be invited to submit tenders by a prescribed date. Where quality is to be evaluated in the absence of the financial offer, one of the proposal procedures contained in 6.3.7 or 6.3.8 shall be used. 6.3.5.6 All tenders received shall be evaluated in accordance with the provisions of 6.6 and the contract shall be awarded in accordance with the provisions of 6.7. 6.3.5.7 The period between the calling for expressions of interest and the inviting of tender offers or proposals shall not exceed 12 months. Where tender offers or proposals cannot be invited within this period, fresh calls for expressions of interest shall be made.

6.3.6 Quotation procedure 6.3.6.1 Procurement documents shall be prepared in accordance with the provisions of 6.2. 6.3.6.2 If permitted in terms of the organization’s procurement policy, tender offers shall be solicited from not less than three tenderers or tender offers shall be invited, giving tenderers a minimum of three working days to respond to the invitation, using one or more of the following methods: a) posting a notice on a website; b) posting a notice on a demarcated notice board in a public area; c) placing an advertisement in a local or national newspaper or national publication; or d) inviting a minimum of three tenderers, registered in an appropriate work category, from a database, to submit quotations so that, over time, all registered tenderers who have the requisite expertise have an opportunity to submit tenders. 6.3.6.3 All tenders received shall be evaluated in accordance with the provisions of 6.6 and the contract shall be awarded in accordance with the provisions of 6.7.

6.3.7 Proposal procedure using the two-envelope system 6.3.7.1 Procurement documents shall be prepared in accordance with the provisions of 6.2 to call for technical and financial proposals. 6.3.7.2 Proposals shall be advertised for in accordance with the provisions of 6.4.1 and 6.4.2 and receipt of proposals shall be closed not less than 20 working days from the date of the advertisement. 6.3.7.3 Technical proposals shall be evaluated and thereafter the financial proposals of only those tenderers who have submitted acceptable technical proposals shall be evaluated.

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SANS 294:2004 Edition 1 6.3.7.4 The remaining tender offers shall be evaluated in accordance with the provisions of 6.6, the final contract shall be negotiated and the contract shall be awarded in accordance with the provisions of 6.7. 6.3.7.5 Negotiations may include discussions on the scope of work, the methodology, staffing and the terms of the contract. The discussions shall not substantially alter the original scope of work or the terms of the contract to the extent that the quality of the final product, its cost, and the relevance of the initial evaluation is affected. The scope of work of the preferred tenderer may be scaled down to accommodate budgetary restraints.

6.3.8 Proposal procedure using the two-stage tendering system 6.3.8.1 Procurement documents shall be prepared in accordance with the provisions of 6.2 to call for technical proposals. 6.3.8.2 Proposals shall be advertised for in accordance with the provisions of 6.4.1 and 6.4.3 and receipt of proposals shall be closed not less than 20 working days from the date of the advertisement. 6.3.8.3 Technical proposals shall be evaluated, unacceptable proposals shall be rejected, procurement documents shall be modified or tenderers shall be allowed to modify their proposals as necessary, and only those tenderers with acceptable proposals shall be invited to submit financial proposals based on the revised procurement documents or revised proposals. All tenders received shall be evaluated in accordance with the provisions of 6.6 and the contract shall be awarded in accordance with the provisions of 6.7. 6.3.8.4 As an alternative to 6.3.8.3, the scope of work, terms and conditions and prices in the best interests of the organization shall be negotiated with the tenderer scoring the highest number of evaluation points in accordance with the provisions of 6.6 and the contract shall be awarded in accordance with the provisions of 6.7. 6.3.8.5 Any requirements, guidelines, documents, clarification or other information relative to the negotiations that are communicated by the organization or its agents to a tenderer shall be communicated on an equal basis to all other tenderers engaged in negotiations relative to the procurement.

6.3.9 Shopping procedure 6.3.9.1 Three written or verbal offers for supplies shall be solicited, preferably from a database of supplies which is managed in such a manner that, over time, all registered tenderers who have the requisite supplies have an opportunity to make offers. 6.3.9.2 A written offer from the lowest priced offer shall be obtained and purchase shall be made against this written offer. NOTE This procedure is only applicable to readily available supplies that have a very low purchase price.

6.3.10 Disposal procedures 6.3.10.1 Disposals shall be undertaken using one of the following disposal procedures: a) the negotiated procedure as provided for in 6.3.2; b) the open procedure as provided for in 6.3.4; c) the qualified procedure as provided for in 6.3.5; or d) public auction.

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SANS 294:2004 Edition 1 6.3.10.2 Where the auction procedure is utilized, the assets or items which are to be auctioned should be displayed in public for a reasonable time before the date of the auction. The date shall be advertised in accordance with the provisions of 6.4 at least five working days before the auction.

6.4 Advertisements 6.4.1 Advertisements shall be published in English, unless the organization’s executive directs that it be prepared in another language, in a manner that enables a wide spectrum of suitably qualified and eligible tenderers to access the opportunities that are presented. 6.4.2 The notice and invitation to submit tender offers shall, as a minimum, contain the following information, as appropriate: a) the tender, project or contract reference number; b) the title of the proposed contract or project; c) a brief description of the supplies, services or engineering and construction works which are required; d) the closing date, place and time for submission of tenders; e) the date and time of the compulsory site inspection or briefing session, if any; and f) the time and place for collecting procurement documents.

6.4.3 The notice and invitation to submit expressions of interest shall include the following information: a) the tender, project or contract reference number, if applicable; b) the title of the proposed contract or the project; c) a brief description of the supplies, services or engineering and construction works which are required; d) the closing date, place and time for expressions of interest; e) the objective selection criteria for short-listing firms to submit tender offers or entry to an electronic database; f) the date and time of the compulsory briefing session, if any; and g) the time and place for collecting the procurement documentation.

6.5 Tender procedures 6.5.1 General 6.5.1.1 Tender boxes should preferably be accessible 24 hours a day, 7 days a week. 6.5.1.2 Tenderers shall either be required to pay a non-refundable amount for procurement documents approximately equivalent to the cost of reproducing such documents or be issued with documents free of charge. Where non-refundable amounts for procurement documents are provided for, such documents shall be made available for inspection by tenderers.

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SANS 294:2004 Edition 1 6.5.1.3 Those persons responsible for procuring on behalf of the organization shall, except in the negotiated or disposal procedures, not contact individual tenderers who are submitting or likely to submit tender offers before the receipt of tenders. Should it be necessary in exceptional circumstances to do so, it shall be done in a manner which does not obligate the organization, compromise the competitive position of others or give any unfair advantage to those who were contacted. 6.5.1.4 Persons responsible for soliciting tender offers shall respond to any request by a tenderer for clarification regarding the procurement documents within a reasonable time before the deadline for the submission or extend the deadline in order to do so. 6.5.1.5 If for any reason those responsible for soliciting tender submissions before the deadline for tender submissions, determine to modify the procurement documents, they shall do so by issuing an addendum that shall be communicated to all prospective tenderers that have drawn procurement documents only if such an addendum can be communicated in advance of the closing date and tenderers can be given reasonable time to react to the contents of such an addendum. Should this not be possible, the addendum shall either not be issued, or the closing date for tender offers or expressions of interest shall be postponed to enable the addendum to be issued. 6.5.1.6 Minutes of any briefing meeting that might be convened shall be taken, recording all requests for clarification received and responses thereto, without identifying the sources of the requests. The minutes of such meetings shall be promptly distributed to those attending the meetings and, if necessary, to all tenderers who draw procurement documents. 6.5.1.7 Where bills of quantities are utilized, tenderers shall be required to tender a sum for their tender offer with or without provision for price adjustment. The tendered sum shall not be adjusted for any arithmetical errors in computing amounts or carrying forward summated amounts; rather rates or extensions shall be adjusted to arrive at the tendered sum.

6.5.2 Receipt of tender submissions 6.5.2.1 Tender submissions, save for those solicited in terms of the quotation procedure, shall only be accepted for evaluation when they are, in accordance with the procurement documents, a) submitted in sealed envelopes, b) annotated with the required particulars, and c) placed in the nominated tender box or delivered to the specified place for receipt of tender submissions. 6.5.2.2 Tender submissions in the quotation procedures should normally be in accordance with the provisions of 6.5.2.1 with the exception that tender offers may be faxed to a specified office. 6.5.2.3 Tender submissions shall be returned unopened (unless it is necessary to open a tender submission to obtain a forwarding address) when a) the tender submission is received after the closing time for tenders, b) the tender submission is received by a method other than the method prescribed in the procurement documents, or c) only one tender submission is received and the organization decides to call for fresh tender submissions.

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SANS 294:2004 Edition 1 6.5.3 Opening of tender submissions 6.5.3.1 All tender submissions shall, unless there are justifiable reasons not to do so, be opened in public, or in the presence of those tenderers who made submissions or their representatives, immediately after the closing time for receipt of tender submissions. Where this is impossible, arrangements shall be made to ensure that no further submissions are received and that such submissions are not tampered with in any way before their opening. Such tender submissions should be opened not more than one week after the closing time for tenders, in the presence of not less than two persons representing the organization and one other person who is independent of the organization, named in the procurement documents. 6.5.3.2 All tender submissions shall each be given a mark of authenticity upon opening and on every page as proof that the tender submission was received before the closing time. 6.5.3.3 After opening each tender submission the person responsible for overseeing the opening of tender submissions shall record for each tender offer, including all alternative tender offers, as relevant a) the name of the tenderer, b) the total of prices, c) contract data that have a bearing on the tendered price e.g. time for completion, settlement discounts, price adjustment, and d) preferences claimed (specific goals and evaluation points claimed). NOTE Where contracts are not awarded in totality to a singe tenderer, the recording of the total of prices is not required. Where defined portions of contracts may be awarded to multiple tenderers and such portions can be readily totalled in the tender submission, those totals should be recorded.

6.5.3.4 The record outlined in 6.5.3.3 shall be made available to all interested persons upon request. 6.5.3.5 Where a proposal procedure is followed, the procedures in 6.5.3.1 and 6.5.3.2 shall be modified so that the technical proposals are opened as soon as is practical and the financial proposals of responsive tenderers, if any, are opened only after the technical proposals have been evaluated. Financial proposals from non-responsive tenders shall be returned unopened.

6.6 Evaluation of tender submissions 6.6.1 Disqualification of tenderers A tenderer (and his tender submission) may be disqualified where it is determined that there has been an effort by that tenderer to influence the processing of tender submissions or if it is established that such tenderer engaged in corrupt or fraudulent practices.

6.6.2 Test for responsiveness 6.6.2.1 The evaluation of tender submissions shall commence with a determination as to whether or not each tender submission properly received is responsive. A responsive tender submission is one which a) complies with the requirements of the tender data; b) has been properly and fully completed and signed; and

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SANS 294:2004 Edition 1 c) conforms to all the terms, conditions, and specifications of the procurement documents without material deviation or qualification which, in the organization’s opinion, would 1) detrimentally affect the scope, quality, or performance of the works, services or supply identified in the scope of work, 2) change the employer's or the tenderer's risks and responsibilities under the contract, or 3) affect the competitive position of other tenderers presenting responsive tenders, if it were to be rectified. 6.6.2.2 Non-responsive tender submissions shall not be subsequently made responsive by correction or withdrawal of the non-conforming deviation or reservation.

6.6.3 Arithmetical errors Responsive tender offers shall be checked for arithmetical errors. Such errors shall be corrected in the following manner: a) Where there is a discrepancy between the amounts in figures and in words, the amount in words shall govern. b) If a bill of quantities or schedule of prices applies and there is an error in the line item total resulting from the product of the unit rate and the quantity, the line item total shall govern and the rate shall be corrected. c) Where there is an obviously gross misplacement of the decimal point in the unit rate, the line item total as quoted shall govern, and the unit rate shall be corrected. d) Where there is an error in the total of the prices, either as a result of other corrections required by this checking process or in the tenderer's addition of prices, the total of the prices shall govern and the tenderer will be asked to revise selected item prices (and their rates if a bill of quantities applies) to achieve the tendered total of the prices.

6.6.4 Ranking and scoring of responsive tenderers 6.6.4.1 An evaluation panel of not less than three persons shall be appointed by the organization to evaluate expressions of interest or tender submissions a) obtained through the proposal procedures set out in 6.3.7 or 6.3.8, b) where method 3 or method 4 of table 3 is nominated in the tender data, c) where eligibility criteria are based on the attainment of a minimum score for quality, or d) where preferences are to be evaluated using the method stated in 4.4.2.5(c). 6.6.4.2 Tender submissions shall not be evaluated against any criteria that are not disclosed in the procurement documents. 6.6.4.3 Each responsive tender offer shall be reduced to a comparative offer and shall be evaluated using the procedure contained in table 3 associated with the method nominated in the tender data (see annex F). A record shall be kept of all the tender evaluation points that are awarded to every tenderer making a tender submission.

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SANS 294:2004 Edition 1 Table 3 — Standard tender evaluation methods 1

2

Method

Procedure

Method 1: Financial offer

1) Rank tender offers from the most favourable to the least favourable comparative offer. 2) Recommend highest ranked tenderer for the award of the contract.

Method 2: Financial offer and preferences

1) Score tender evaluation points for financial offer. 2) Confirm that tenderers are eligible for the preferences claimed and if so, score tender evaluation points for preferencing. 3) Calculate total tender evaluation points. 4) Rank tender offers from the highest number of tender evaluation points to the lowest. 5) Recommend tenderer with the highest number of tender evaluation points for the award of the contract.

Method 3: Financial offer and quality

1) Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the tender data, if any. 2) Score tender evaluation points for financial offer. 3) Calculate total tender evaluation points. 4) Rank tender offers from the highest number of tender evaluation points to the lowest. 5) Recommend tenderer with the highest number of tender evaluation points for the award of the contract.

Method 4: Financial offer, quality and preferences

1) Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the tender data, if any. 2) Score tender evaluation points for financial offer. 3) Confirm that tenderers are eligible for the preferences claimed and if so, score tender evaluation points for preferencing. 4) Calculate total tender evaluation points. 5) Rank tender offers from the highest number of tender evaluation points to the lowest. 6) Recommend tenderer with the highest number of tender evaluation points for the award of the contract.

The maximum score in respect of the financial offer, quality and preference, as relevant, shall be such that the procurement remains fair, equitable, competitive and cost-effective.

6.6.4.4 Quality shall be scored for each of the criteria stated in the tender data. Each member of the evaluation panel shall score each and every criterion independently. The scores shall thereafter be averaged and retained for auditing purposes. 6.6.4.5 Preferences shall be scored using a method provided for in 4.4.2.5 as stated in the tender data. Where preferences are evaluated using the method stated in 4.4.2.5(c), each member of the evaluation panel shall score each preference. The scores shall thereafter be averaged and retained for auditing purposes. 6.6.4.6 The reasonableness of comparative offers shall be judged. All tender offers with unrealistic financial offers shall be rejected and the remaining comparative offers scored in accordance with the following formula: WF = W1 × A where WF is the number of tender evaluation points awarded for the financial offer;

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SANS 294:2004 Edition 1 W1 is the maximum possible number of tender evaluation points awarded for the financial offer as stated in the tender data; A

is a number calculated using either formula 1 or formula 2 contained in table 4 or table 5, as stated in the tender data.

NOTE 1 The offer receiving the highest number of points for price should be realistically priced. Unrealistic financial offers (i.e., where it is not economically possible to perform the contract at that price) distort the scoring of price. In cases where a tenderer has tendered a favourable unrealistic financial offer, the evaluator should ascertain whether or not there is a valid reason for the tender price being unrealistic. This will necessitate that the tenderer be interviewed. If there is no valid reason, the tender offer should be eliminated from further consideration. NOTE 2 The use of a formula contained in table 4 will result in negative scores where the lowest price or percentage commission/fee is less than half the offer under consideration or where the highest price or discount is more than double the offer under consideration.

6.6.4.7 Financial offers, preferences and quality, as relevant, shall be scored to two decimal places. Where two or more tender offers score an equal number of tender evaluation points, the tenderer who is recommended for the award of the contract shall be the tenderer with the highest number of a) preference points when method 2 or method 4 is used, and b) quality points when method 3 is used. Table 4 — Formulae for comparing comparative offers (option 1) 1

2

3

Formula

Basis for comparison

Value of A

a

a

1

Highest price or discount

(1 +

(P − Pm ) ) Pm

2

Lowest price or percentage commission/fee

(1 −

(P − Pm ) ) Pm

Pm is the comparative offer of the most favourable comparative offer. P

is the comparative offer of the tender offer under consideration.

Table 5 — Formulae for comparing comparative offers (option 2) 1

2

3

Formula

Basis for comparison

Value of A

a

a

1

Highest price or discount

P/Pm

2

Lowest price or percentage commission/fee

Pm/P

Pm is the comparative offer of the most favourable comparative offer. P

is the comparative offer of the tender offer under consideration.

6.6.5 Risk assessment 6.6.5.1 Compliance with the provisions of 6.7.1 shall be confirmed in respect of the highest ranked tenderer (method 1) or the tenderer scoring the highest number of tender evaluation points (method 2, 3 or 4). In the event of non-compliance, compliance shall be established in respect of

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SANS 294:2004 Edition 1 the next highest ranked tenderer or tenderer scoring the next highest points. The process shall be repeated until a tenderer who complies with such requirements is identified. NOTE In the nominated procedure, the admittance criteria should ensure that only tenderers who comply with the requirements of 6.7.1 are entered into the electronic database, in which case the establishment of compliance in accordance with the provisions of 6.6.3.1 is not necessary. In the qualified procedure and where eligibility criteria are based on the provisions of 6.7.1, it might not be necessary to establish compliance in accordance with the provisions of 6.6.5.1.

6.6.5.2 A risk analysis shall be performed on the tender submission of the highest ranked tenderer or tenderer who scores the highest number of tender evaluation points and complies with the provisions of 6.7.1 to ascertain if any of the following, as relevant, present an unacceptable commercial risk to the organization: a) unduly high or unduly low tendered rates or amounts in the tender offer; b) contract data provided by the tenderer; or c) the content of tender returnables which are to be included in the contract. 6.6.5.3 The tenderer shall be approached to amend any part of his tender submission that might, in the opinion of the organization, present an unacceptable commercial risk, provided that such negotiations do not affect the competitive position of the tenderer. Failure to make unacceptable commercial risks acceptable to the organization might be sufficient grounds for the organization to reject the tender. 6.6.5.4 Clarifications shall be obtained from a tenderer on any matter that could give rise to ambiguity in a contract arising from the tender offer. 6.6.5.5 The reasons for overlooking or rejecting a tender offer shall be recorded for audit purposes.

6.6.6 Negotiations with tenderers Communication with tenderers shall only take place for the purpose of clarification and not for negotiation, save for that provided for in 6.3 and 6.6.5.3.

6.6.7 Tender evaluation report A tender evaluation report shall be prepared for all procurement undertaken (except where not required in terms of the organizations procurement policy) and shall, as a minimum, contain a) the contract number and description, b) an outline of the procurement strategy that was adopted, i.e. the targeting, contracting and pricing strategy and the procurement procedure, as relevant, c) the tender validity expiry date and the tender closing date, d) the date of advertisement and the place where advertised, e) the method of tender evaluation (method 1, 2, 3 or 4), f) the number of tenders received and the number of responsive tenders, g) the name of the recommended tenderer and key aspects of the recommended tenderer’s offer,

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SANS 294:2004 Edition 1 h) the cost estimate (budget) prepared ahead of the tender, i) the parameters used for scoring tenderers and the score assigned to each tenderer in respect of each component of the evaluation that is evaluated, and j) the reasons for rejecting or overlooking a tenderer. NOTE SANS 10396 contains an example of a tender evaluation report.

6.7 Award of contracts 6.7.1 A contract shall not be awarded to a tenderer who a) in terms of 4.2.3, is under restrictions, or has principals who are under restrictions, preventing him/them from participating in the organization’s procurement, b) cannot demonstrate that he possesses the necessary professional and technical qualifications, professional and technical competence, financial resources, equipment and other physical facilities, managerial capability, reliability, experience and reputation, and the personnel, to perform the contract, c) does not have the legal capacity to enter into the contract, d) is insolvent, in receivership, bankrupt or being wound up, has his affairs administered by a court or a judicial officer, has suspended his business activities, or is subject to legal proceedings in respect of any of the foregoing, e) does not comply with the legal requirements, if any, stated in the organization’s procurement policy, and f) might not be able to perform the contract in the best interest of the organization owing to conflicts of interest. NOTE 1 A tender can be rejected on technical grounds (a), (c), (d) and (e) or for not having the capability and capacity to undertake the work (b). There are no other grounds for declining a tender apart for (f) or for a breach of the standard conditions of tender. NOTE 2 Organizations may decline to contract with tenderers who are not in good standing insofar as a piece of legislation is concerned, e.g. their tax obligations. NOTE 3 Conflicts of interest can arise from prior or current obligations to other organizations. They might also arise where a contractor provides supplies or engineering and construction works to a particular project and is then called upon to provide professional services relating to that project.

6.7.2 Contracts shall be signed as soon as possible after the contract is awarded by the person authorized to do so in terms of the organization’s procurement policy. NOTE 1 It is sufficient to merely sign the acceptance portion of the form of offer and acceptance, where provided, to accept the tender offer. NOTE 2 The initialling of each page is not required to give effect to the contract. This practice might, however, assist in identifying the contract between the parties during the discovery phase of litigation proceedings.

6.7.3 The final draft contract shall be prepared and issued to the successful tenderer for acceptance as soon as possible after the date of the employer's signing of the form of offer and acceptance, and where relevant, the signing of the schedule of deviations.

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SANS 294:2004 Edition 1 6.7.4 The contract shall be compiled from the procurement documents issued to tenderers and the returnable documents in accordance with the provisions of SANS 10403 and shall, as relevant, take account of a) addenda issued during the tender period, b) the content of returnable documents, and c) any revisions agreed between the employer and the successful tenderer.

6.7.5 After the successful tenderer has received the employer's notice of acceptance, all other tenderers shall be notified that their tender offers have not been accepted by post, telefax or other electronic method, or by publication of the name of the successful tenderer on a website or in an accessible publication, as appropriate.

6.7.6 The details of every contract awarded shall be recorded. This record shall include a) the contract reference number, b) a description of the work, c) the contract price, d) preferences claimed, e) tender evaluation points awarded, f) the price of the tender offer used for comparative purposes where preferences were applied in the evaluation of tenders, and g) the name and address of the successful tenderer.

6.7.7 The following details of every contract that is awarded should be made known to interested parties upon request after the successful tenderer has received the employer’s notice of acceptance: a) the contract reference number; b) a description of the procurement; c) the total contract price or price for a portion thereof, if relevant (see 6.5.3.3); d) tender evaluation points awarded, if any; and e) the name of the successful tenderer.

6.7.8 If the tenderer is unable, unwilling or fails to enter into the contract, the contract shall be offered to the tenderer with the next highest number of tender evaluation points subject to the provisions of 6.6.5, and so on until the contract is awarded; provided, however, that the procurement remains cost-effective and such tender offers are still valid. 6.7.9 In situations where no contract is awarded, the organization shall review the procurement requirements and procurement procedures and begin the procurement process again, unless there are compelling reasons not to do so.

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SANS 294:2004 Edition 1 6.8 Contract administration 6.8.1 Every tenderer awarded a contract shall complete that contract in accordance with its terms and requirements. In the event that the organization determines that the contractor’s performance is unsatisfactory due to circumstances within a contractor's control, the organization may take whatever actions or impose whatever sanctions it deems appropriate in accordance with the provisions of the contract. 6.8.2 The organization or its agents shall monitor the contractor's performance under the contract to ensure that the requisite quality standards are attained and the requirements are satisfied, and shall certify compliance upon completion of the contract. 6.8.3 Where, through unforeseeable circumstances, it is necessary to increase the quantum of work or to perform additional work within the broad scope of the contract, the contractor may be instructed to perform such work under the contract provided that the final contract amount is not above the percentage contained in the organization’s procurement policy, excluding any provision for price adjustment, at the time that the contract is awarded. Work in excess of this limit shall not be undertaken without the express permission of the organization’s executive.

6.8.4 If, at any point during the term of a contract, it is terminated or cancelled by either the contractor or the organization, a record of the reasons for this cancellation/termination shall be made. 6.8.5 Upon completion of a contract, a record of the key performance indicators relating to time, cost and the attainment of goals associated with a preferential procurement policy pertaining to that contract should be made.

6.9 Resolution of disputes arising from a contract 6.9.1 General 6.9.1.1 Disputes shall be resolved in accordance with the provisions of the contract. This shall not, however, preclude the parties from settling their differences using alternative means such as expert determination, mediation and conciliation, failing which the dispute shall be resolved in terms of the contract. 6.9.1.2 Mediation should be undertaken in accordance with the provisions of 6.9.2.

6.9.2 Mediation 6.9.2.1 The mediator shall be selected by agreement between the parties or, failing such agreement, by a mutually agreed upon person. Mediation shall be conducted without legal representation with the costs being borne equally by the parties. 6.9.2.2 The mediator shall convene a hearing of the parties and may hold separate discussions with any party. The mediator shall assist the parties in reaching a mutually acceptable settlement of their differences through means of reconciliation, interpretation, clarification, suggestion and advice. The parties shall record such agreement in writing and thereafter they shall be bound by such agreement. 6.9.2.3 The mediator shall be authorized to end the mediation process whenever, in his opinion, further efforts at mediation would not contribute to a resolution of the dispute between the parties. 6.9.2.4 If either party is dissatisfied with the opinion expressed by the mediator or should the mediation fail, then such party may require that the dispute be settled in terms of the contract.

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SANS 294:2004 Edition 1 6.10 Departures Departures may be made from the methods and procedures provided in 6.3 to 6.8 with the approval of the organization’s executive provided that the procurement remains a) fair, b) equitable, c) transparent, d) competitive, and e) cost-effective.

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SANS 294:2004 Edition 1

Annex A (informative)

A generic procurement process There are six principal activities associated with a generic procurement process: a) the establishment of what is to be procured; b) a decision on procurement strategies; c) the solicitation of tender offers; d) the evaluation of tender offers; e) the award of the contract; and f) the administration of the contract and confirmation of compliance with the requirements. The fundamental actions associated with the principal procurement activities are described in table A.1. Each procurement activity may be broken down into a series of subactivities. The subactivities should incorporate control points to facilitate the management of the procurement process. Table A.2 presents a generic set of subactivities associated with each principal procurement activity and which incorporates actions leading to procedural milestones (control points). Table A.1 — Principal activities and related actions associated with a generic procurement process 1

2 Principal activity

No.

Description

3 Related action

1

Establish what is to be procured

Clarify what is to be procured.

2

Decide on procurement strategies

Determine how the procurement is to take place.

3

Solicit tender offers

Solicit tender offers in terms of a set of procedures.

4

Evaluate tender offers

Evaluate tender offers in terms of undertakings and parameters established in procurement documents.

5

Award contract

Enter into contract with the successful tenderer.

6

Administer contract and confirm compliance with requirements

Act in terms of the contract and confirm that procurement is in accordance with all requirements.

Not all procurement systems will contain all the subactivities listed in table A.2. as an organization’s procurement policy may exclude certain options. Organizations should designate and empower persons to make decisions whenever a procedural milestone is attained.

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SANS 294:2004 Edition 1 Table A.2 — Subactivities and related principal actions associated with each procurement activity 1

2

Procurement activity No.

Description

1

Establish what is to be procured

3 Subactivity

Description 1. Prepare broad scope of work for procurement

Principal action Develop a title for the procurement for the purpose of project identification and a broad scope of work.

2. Estimate financial value of proposed Estimate the financial value of the proposed procurement contract for budgetary purposes, based on the broad scope of work.

2

3

Decide on procurement strategies

3. Obtain permission to start with the procurement process

Designated person makes a decision to proceed/ not to proceed with the procurement based on the broad scope of work and the financial estimates.

1. Establish applicable preferential procurement policy

Identify the specific goals which are to be pursued, if any, and establish quantitative targets and implementation procedures which are consistent with the procuring body’s objectives.

2. Establish contract and pricing strategy

Decide on an appropriate allocation of responsibilities and risks and the methodology by which contractors are to be paid.

3. Establish targeting strategy

Decide on the methodology that is to be used to implement preferencing.

4. Establish procurement procedure

Identify the process that will be followed to solicit tender offers and to conclude a contract.

5. Obtain approval for procurement strategies that are to be adopted

Designated person confirms selection of strategies so that tender offers can be solicited.

Solicit tender 1. Prepare procurement documents offers 2. Obtain approval for procurement documents

Prepare pre-qualification or tender documents (or both), as appropriate, that are compatible with the approved procurement strategies. Designated person reviews the procurement document, identifies sections, if any, which require amendments or improvements, and grants the necessary approval.

3. Confirm that budgets are in place Designated persons make sure that finance is available for the procurement to take place. 4. Invite contractors to submit tender offers or expressions of interest

Advertise for tenders/identify contractor(s) that are to be invited to submit tender offers in accordance with the approved procurement procedure, issue procurement documents, respond to requests for clarification, conduct clarification/site meetings, issue attendees with minutes of such meetings, and issue addenda, as relevant.

5. Receive tender offers or expressions of interest

Ensure that arrangements are in place to receive tender offers/expressions of interest and return unopened those that are received late, are not delivered in accordance with instructions given to tenderers or where only one tender is received and it is decided to call for fresh tenders.

6. Evaluate expressions of interest

Open expressions of interest, record data relating to the submission and evaluate in accordance with undertakings made to tenderers.

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SANS 294:2004 Edition 1 Table A.2 (continued) 1

2

Procurement activity No. 3

4

36

Description

Subactivity Description

Solicit tender 7. Prepare evaluation report on short-listing process offers

Evaluate tender offers

3

Principal action Prepare evaluation report and make recommendations in respect of actions to be taken, depending upon the procurement procedure that is adopted.

8. Confirm short list

Designated person reviews evaluation report and ratifies recommendations.

9. Invite tender offers from short-listed tenderers

Invite tender offers from short-listed tenderers, respond to requests for clarifications by tenderers, conduct clarification/site meetings, issue all attendees with the minutes of such meetings, and issue addenda to amend or amplify the procurement documents, as relevant.

1. Open and record tender offers received

Open tender offers, either in public or in the presence of not less than three designated persons, and record pertinent details, authenticate all pages of returnable documents, and notify interested parties of pertinent details if requested to do so.

2. Determine whether or not tender offers are complete

Examine tenders and determine whether or not they are complete, request tenderers to complete items that are required only for tender evaluation purposes and record what is incomplete in each tender submission.

3. Determine whether or not tender offers are responsive

Confirm compliance with all the requirements of the procurement documents, including eligibility criteria. If not, declare tender offers non-responsive and record reasons for declaring a tender to be nonresponsive and disregard such tender offers from further consideration.

4. Evaluate tender submissions

Review financial offer and correct discrepancies between totals and calculations/summations, identify parameters included in the tender submission that have a bearing on the financial offer and reduce all tender offers to a common base. Judge the reasonableness of financial offers and reject all tender offers with unrealistic financial offers. Evaluate tender submissions in accordance with the tender evaluation method adopted for the procurement.

5. Perform a risk analysis

Perform a risk analysis on the tenderer ranked highest in terms of the tender evaluation and, if found to be unsatisfactory, undertake an analysis on the next highest ranked tenderer and so on until such time as a tenderer satisfies the risk assessment, and recommend this tenderer for the award of the contract.

6. Prepare a tender evaluation report

Prepare a tender evaluation report which, as a minimum, contains the tender evaluation points awarded to each tenderer, the reasons for eliminating a tender offer and a recommendation for the award of the contract.

7. Confirm recommendation contained in the tender evaluation report

Designated person reviews report and ratifies recommendation.

SANS 294:2004 Edition 1 Table A.2 (concluded) 1

2

Procurement activity No. 5

6

Description Award contract

Administer contracts and confirm compliance with requirements

3 Subactivity

Description

Principal action

1. Notify successful tenderer and unsuccessful tenderers of outcome

Notify the successful tenderer and unsuccessful tenderers in writing.

2. Compile contract document

Assemble contract document from the relevant tender returnables and issue draft contract to tenderers, capturing all the changes that were agreed to between the offer and acceptance.

3. Formally accept tender offer

Confirm that the tenderer has provided evidence of complying with all requirements stated in the tender data and formally accept the tender offer in writing and issue the contractor with a signed copy of the contract.

4. Capture contract award data

Capture, into a database, essential contract data for record purposes.

1. Administer contract in accordance with the terms and provisions of the contract

Administer the contract in accordance with its terms and conditions and pay contractors within the time periods provided for in the contract so as to avoid interest on late payments.

2. Ensure compliance with requirements

Monitor the contractor’s performance to ensure that the requisite quality standards are attained and all requirements are satisfied and certify compliance upon completion.

3. Capture contract completion/ termination data

Record, in a database, key performance indicators relating to time, cost and the attainment of specific goals associated with a preferential procurement policy, or if the contract is terminated or cancelled, the reasons therefor.

NOTE Subactivities in bold type represent control points, i.e. procedural milestones.

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SANS 294:2004 Edition 1

Annex B (informative)

Selecting a standard procurement procedure B.1 General B.1.1 Procurements, other than those involving disposals, fall into one of the following categories or subcategories: a) services: 1) professional; 2) miscellaneous; 3) operation and maintenance of a facility, structure or system; 4) hire of plant and equipment; b) supplies: 1) contracts that require sophisticated arrangements for importation of substantial items of plant; 2) provision on a local, off-the-shelf basis; and c) engineering and construction works: 1) small, low-risk works; 2) major or high-risk works.

B.1.2 Not all procurement procedures are appropriate to all categories and subcategories of procurement. Best value should be the determinant in selecting a particular procurement procedure. B.1.3 Figure B.1 shows the typical considerations associated with the selection of a specific procurement procedure.

B.1.4 The World Bank, the World Trade Organization and the United Nations Commission on International Trade Law promote a number of procurement procedures. The mapping between these procedures and the approach advocated by this standard is described in table B.1.

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SANS 294:2004 Edition 1

start yes Does the procurement involve very low price readily available supplies?

Does the procurement require tenderers to develop proposals against budgets? Does the scope of work need to be developed with a group of tenderers?

Does the procurement satisfy one or more of the following? ● demand a high degree of specialized inputs ● require skills and expertise which are not readily available ● require exceptional quality ● require exceptional management skills in their provision ● the time and cost required to examine and evaluate a large number of tender offers would be disproportionate to the importance of procurement ● involve a series of contracts where it would be advantageous to invite tenderers that have similar capacity and capabilities to submit tenders for specific contracts

Is the procurement repetitive and routine in nature or does it involve supplies that are readily available and the estimated contract value including value-added tax is low?

Shopping procedure

yes Proposal procedure (optional)

yes Qualified procedure (optional)

yes

Nominated procedure (optional)

yes Is the estimated contract value less than a defined threshold?

Was one or more of the following criteria satisfied? ● only irregular or non-responsive tenders were submitted in terms of any of the open, qualified, nominated or quotation procedures that were followed ● only one contractor was identified as possessing the necessary experience and qualifications or product to provide the required service or supplies ● an emergency has arisen that is so extreme as to warrant the negotiated procedure being pursued ● the required supplies, services or engineering and construction works cannot technically or economically be separated from another contract previously performed by a specific contractor ● the service or engineering and construction works being procured are largely identical to works previously executed by that contractor and it is not in the public interest to solicit other tenders ● services and supplies have a very low ceiling value (shopping)

Quotation procedure (optional)

yes Negotiated procedure (optional)

NOTE If any doubt exists as to which procedure should be used in a given situation, or the organization does not have the capacity to perform a particular procedure, the open procedure should be adopted.

Open procedure

Figure B.1 — Typical considerations when selecting a specific procurement procedure

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SANS 294:2004 Edition 1 Table B.1 — The relationship between international procedures and those contained in this standard 1

2

3

International methods and procedures Descriptor

Description

4

5

Approach using this standard Procurement procedure (see table 1)

Standard tender evaluation method (see table 3)

Tender data

World Trade Organization’s Government Procurement Agreement Open tendering procedure

In this procedure, all interested tenderers may submit tender offers. (This procedure may include a qualification procedure whereby all those that have expressed an interest to participate in a procurement and that are found to satisfy qualification criteria are allowed to tender.)

Open or qualified Method 1, 2, 3 or 4, procedure depending upon the agreements that are in place

Selective tendering procedure

In this procedure, the tenders are invited from a Qualified or number of domestic suppliers and suppliers of other nominated countries to ensure international competition in a procedure fair and non-discriminatory manner.

Limited tendering procedure

In this procedure, the open or selective tendering procedures do not apply.

a

Negotiated , qualified, quotation, or proposal procedure

Tender data shall state Method 1, 2, 3 or 4, which depending upon method is to the agreements be used. that are in place Method 1, 2, 3 or 4, depending upon the agreements that are in place

United Nations Commission on International Trade Law (UNCITRAL) Model Law on Procurement of Goods, Construction and Services Restricted tendering

In this procedure, a limited number of tenderers Nominated or who are qualified are invited to submit tender offers. qualified procedure

Method 1 or 2, depending upon preferencing arrangements

Two-stage tendering

In this procedure, tenderers are invited to submit proposals relating to the technical, quality or other characteristics of the procurement without a price. Negotiations are entered into with qualified tenderers concerning any aspect of their tenders. In the second stage tenderers whose tenders have not been rejected are invited to submit final tenders with prices in respect of a revised scope of work. Price, or any combination of price preference and quality may be used in the evaluation of tenders.

Proposal procedure using the two-stage system

Method 1, 2, 3 or 4, depending upon preferencing arrangements

Request for proposals

In this procedure, expressions of interest in submitting a proposal are sought. Proposals are invited from those respondents who expressed an interest in submitting a proposal. The quality of the proposal is evaluated separately from and before the price proposal. Price, or any combination of price, preference and quality may be used in the evaluation of tenders.

Modified proposal procedure using the two-envelope system

Method 3 or 4, depending upon preferencing arrangements

–

Competitive negotiation

In this procedure, negotiations are entered into with a sufficient number of suppliers or contractors to ensure effective competition. Any requirements, guidelines, documents, clarifications or other information relative to the negotiations that are communicated by the procuring entity to a supplier or contractor are communicated on an equal basis to all other tenderers engaging in negotiations. Following completion of negotiations, the remaining tenderers are invited to submit best and final offers with respect to all aspects of their proposals.

Proposal procedure using the two-stage system

Method 1 or 2, depending upon preferencing arrangements

–

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Tender data shall state which method is to be used.

SANS 294:2004 Edition 1 Table B.1 (continued) 2

1

3

International methods and procedures Descriptor

Description

4

5

Approach using this standard Procurement procedure (see table 1)

Standard tender evaluation method (see table 3)

Tender data

United Nations Commission on International Trade Law (UNCITRAL) Model Law on Procurement of Goods, Construction and Services Prequalification proceedings

In this procedure, tenderers are requested to prequalify. Tender offers are only solicited from prequalified tenderers.

Nominated or qualified procedure

Method 1, 2, 3 or 4, depending upon preferencing arrangements

Request for quotations

In this procedure, quotations are solicited from at least three tenderers. The contract is awarded to the tenderer submitting the lowest financial offer.

Quotation procedure

Method 1

Singlesource procurement

In this procedure, a proposal or price quotation from Negotiated a a single tenderer is solicited. procedure

Selection procedure without negotiation (services contract)

In this procedure, there is an establishment of a threshold with respect to quality and technical aspects. Only those tenderers who are rated at or above the threshold are considered. Quality is not considered any further in the evaluation of tender offers.

Nominated, qualified, or open proposal (twoenvelope) procedure

Method 1 or 2, depending upon preferencing arrangements

Selection procedure with simultaneous negotiations (services contract)

In this procedure, negotiations are entered into with tenderers who have submitted acceptable proposals subject to the opportunity to participate in negotiations being extended to all participants.

Proposal (twostage tendering system) or qualified procedure

Method 3 or 4 depending upon preferencing arrangements

Selection procedure with consecutive negotiations (services contract)

In this procedure, the tenderer who has the best rating in terms of the submissions made is invited to negotiate the price. Negotiations are terminated when it becomes apparent that the negotiations will not result in a contract. The process is repeated with the next highest rated submission and so on until a contract is concluded.

Following the completion of negotiations, all tenderers are requested to submit their best and final offer with respect to all aspects of their proposals. The evaluation of best and final offers is evaluated on a balance between price and the quality of the proposal.

Proposal (twostage tendering system) procedure

–

–

–

–

The tender data shall, in addition to stating which method is to be used, state that all the tenders that fail to achieve the threshold score for quality will be considered as being nonresponsive. The tender data shall state that negotiations will be entered into with the tenderer that has the highest score for quality.

World Bank International competitive bidding

In this procedure, all eligible tenderers are provided Open procedure with timely and adequate notification requirements and an equal opportunity to tender for the required supplies or engineering and construction works.

Method 1 or 2, depending upon preferencing arrangements

Two stage (turnkey contracts or contracts for large complex plants or works of a special nature)

In this procedure, the submission of unpriced technical proposals on the basis of a conceptual design or performance specifications are required, subject to technical as well as commercial clarifications and adjustments, followed by amended procurement documents and the submission of final technical proposals and priced bids in the second stage.

Method 1 or 2, depending upon preferencing arrangements

Proposal procedure using two-stage tendering system

Tender data shall state which method is to be used.

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SANS 294:2004 Edition 1 Table B.1 (continued) 2

1

3

International methods and procedures Descriptor

Description

4

5

Approach using this standard Procurement procedure (see table 1)

Standard tender evaluation method (see table 3)

Tender data

World Bank Prequalification of bidders

In this procedure, prospective tenderers are invited Qualified to pre-qualify for the submission of tenders on the procedure basis of the capability and resources of prospective bidders to perform the particular contract satisfactorily, taking into account their experience and past performance on similar contracts, capabilities with respect to personnel, equipment, and construction or manufacturing facilities, and financial position. Only those tenderers who qualify are invited to make tender submissions.

Method 1 or 2, depending upon preferencing arrangements

Limited international bidding

In this procedure, the same is done as for international competitive bidding except that direct invitations are made without open advertisement.

Nominated procedure

Method 1 or 2, depending upon preferencing arrangements

Shopping

In this procedure, there is a comparison of quotations obtained from usually at least three tenderers to assure competitive prices.

Quotation procedure

Method 1

Direct contracting

In this procedure, there is direct contracting without Negotiated competition (single source). procedurea

Quality and cost-based selection (QCBS) (Consultants)

In this procedure, there is a competitive process amongst short-listed tenderers that takes into account the quality of the proposal and the cost of the services in the selection of the successful tenderer.

Tender data shall state which method is to be used.

–

–

–

Nominated or qualified b procedure

Method 3 or 4, depending upon preferencing arrangements

Tender data shall state which method is to be used.

Proposal procedure either using the twostage tendering system or the two-envelope system

Method 3 or 4, depending upon preferencing arrangements

Tender data shall state which method is to be used.

Proposal procedure using the two-envelope c system

Method 3 or 4, depending upon preferencing arrangements

Tender data shall state which method is to be used and make it an obligation for tenderers to submit tenders that do not exceed the budget.

Tenderers are provided with an indication of the expected input of key professionals (staff time). Qualitybased selection (QBS) (Consultants)

In this procedure, the submission of either a technical proposal only (without the financial proposal), or both technical and financial proposals at the same time, but in separate envelopes, are required. The tenderer submitting the highest ranked proposal, where only technical proposals are requested, is invited to negotiate the financial proposal. If the two-envelope system is used, the financial proposals of only those respondents that provide acceptable proposals are opened and evaluated on the basis of a balance between quality and financial offer. The final contract is thereafter negotiated. Tenderers are provided with an indication of the expected input of key professionals (staff time).

Selection under a fixed budget (Consultants)

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In this procedure, tenderers are provided with a scope of work and the available budget and are invited to provide their best technical and financial proposals in separate envelopes, within the budget. The quality of the technical offer is evaluated before opening the financial offer. Financial offers within budget are evaluated. A contract is negotiated with the tenderer submitting the highest ranked technical offer.

SANS 294:2004 Edition 1 Table B.1 (concluded) 2

1

International methods and procedures Descriptor

Description

3

4

5

Approach using this standard Procurement procedure (see table 1)

Standard tender evaluation method (see table 3)

Tender data

World Bank Least cost In this procedure, a minimum qualifying mark for Nominated or selection quality is established. Proposals are invited in two qualified (Consultants) envelopes from a short list. Technical envelopes procedure are opened first and evaluated. Those securing less than the minimum are rejected, and the financial envelopes of the rest are opened in public. The tenderer with the lowest price is selected.

Selection based on consultants’ qualifications (Consultants)

In this procedure, a call for expressions of interest and information on the consultants’ experience and competence relevant to the assignment is made in order to establish a short list and to select the tenderer with the most appropriate qualifications and references. A contract is negotiated with a selected tenderer.

SingleIn this procedure, a suitable tenderer is identified source and a contract is negotiated. selection (Consultants)

Method 1 or 2, depending upon preferencing arrangements

The tender data shall, in addition to stating which method is to be used, state that all the tenders that fail to achieve the threshold score for quality will be considered as being nonresponsive.

Select tenderer from electronic database or call for expressions of interest

–

The submission data shall state that a contract will be entered into with the tenderer who has the most appropriate qualifications and references.

Negotiated a procedure

–

–

a

In the negotiated procedure, there will be no standard tender evaluation method.

b

The open procedure with eligibility criteria stated in the tender data can be used as an alternative.

c

The open, qualified or nominated procedure can also be used as price is not a factor.

B.2 Negotiated procedure The negotiated procedure should be used when a) an emergency has arisen that is so extreme as to warrant the negotiated procedure to be pursued; b) the required supplies, services or engineering and construction works cannot technically or economically be separated from another contract previously performed by a specific contractor;

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SANS 294:2004 Edition 1 c) only one contractor has been identified as possessing the necessary experience and qualifications or product for providing the required service, supplies or engineering and construction works; d) services and supplies have a very low ceiling value; e) the service or engineering and construction works being procured are largely identical to works previously executed by that contractor and it is not in the interest of the public or the organization to solicit other tender offers; and f) a professional service contract has a relatively low ceiling value, which can be based on time and proven cost, in accordance with tariffs issued by statutory councils or national departments.

B.3 Nominated procedure B.3.1 The nominated procedure should only be used for work that is of a relatively simple and routine nature or in respect of supplies that are readily obtainable and the value of which is below a prescribed threshold. This procedure is appropriate only where an organization is required to make a large number of such procurements over a period of time and the cost of maintaining the list and administering the system in relation to the cost of advertising tenders and evaluating a possibly larger number of tenders, justifies this approach.

B.3.2 This procedure should not be used where the estimated contract value is above the threshold amount. Fairness and cost-effectiveness on higher-value procurements is arguable, particularly as the procedure solicits tenders from a restricted segment of the market and as such does not allow those tenderers who are able to comply with requirements at more competitive prices through alternative, innovative and specialist expertise or experience to do so. The procedure furthermore does not encourage contractors to develop relationships with an organization and reduces access to work opportunities. This can constrain or inhibit the growth of contractors.

B.4 Open procedure The open procedure is a suitable procedure for most procurements. Its use should, however, be questioned where a) the cost of advertising or the evaluation of a large number of tender submissions is disproportionate to the value of the work, and b) only one contractor has been identified as possessing the necessary experience and qualifications or product for providing the required service, supplies or engineering and construction works.

B.5 Qualified procedure B.5.1 The qualified procedure should be used when a) a contract requires a high degree of specialized input or requires skills and expertise that is not readily available; b) a contract requires exceptional management skills or quality; c) a contract requires significant tenderer inputs in order to respond appropriately to requirements so that a price may be determined;

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SANS 294:2004 Edition 1 d) it is desirable, in a large programme, to link parcels of work to tenderers who have the appropriate capacity and capability to compete against each other; e) the time and cost required to examine and evaluate a large number of tender offers would be disproportionate to the procurement; and f) for practical reasons, it is necessary to limit the number of tender submissions that are received.

B.5.2 The strength of the procedure lies in the elimination of unlikely candidates for the award of the contract from the outset and to limit the number of tender submissions that require evaluation. Tenderers, particularly in high-value tenders or high-input tenders, e.g. design and build, are more willing to submit competitive tenders in the knowledge that there are a limited number of competitors. In some large programmes, this procedure can be used to identify, at an early stage, those firms that are interested in tendering. Firms can be pre-qualified to undertake work commensurate with their capacity and capabilities and be invited in relatively small numbers to submit tenders for work that is within the scope of their capacity and capabilities, in such a manner that all pre-qualified tenderers have an equal opportunity to access work opportunities.

B.5.3 The weakness of this procedure lies in the considerable administrative cost and time taken to short-list tenderers, particularly where short listing is based on a points scoring system.

B.5.4 It should be noted, however, that it is possible to pre-qualify tenderers in an open procedure should eligibility criteria be established in the tender data. Where this is done, only eligible (prequalified) tenderers would be permitted to submit tenders and evaluators would confirm eligibility to submit a tender before the evaluation of a tender.

B.6 Quotation procedure The quotation procedure should only be used on relatively low-value procurements.

B.7 Proposal procedure B.7.1 Two-envelope system B.7.1.1 The two-envelope system is recommended for use in service contracts where tenderers are required to develop and price proposals to satisfy a broad scope of work established by the organization. The benefits of this approach are that quality (technical submission) may be evaluated in the absence of price i.e. price is only considered should the quality offered comply with the requirements.

B.7.1.2 The danger in this approach is that quality is scored on a comparative basis. Where tenderers are not given an indication of the project budget or the man-hours considered appropriate to execute the scope of work, there is a danger that a proposal that complies with the minimum requirements with a moderate price is unfairly compared against a proposal that provides "all the bells and whistles" with an unacceptably high price and is eliminated from consideration. It is therefore recommended that where this procedure is used, the project budget or the estimated time inputs are indicated to tenderers so that proposals can be compared with each other.

B.7.2 Two-stage tendering system The two-stage tendering system is appropriate only where the organization is not really sure as to what it requires or has extreme difficulty in expressing its requirements. The procedure allows the scope of work to be developed together with tenderers.

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SANS 294:2004 Edition 1

B.8 Shopping This procedure should only be used in respect of very low-value purchases. It provides a simple means of obtaining off-the-shelf items. The requirement for the obtaining of a written offer provides an audit trail.

B.9 Eligibility criteria Eligibility criteria can also form part of a procurement procedure. Eligibility criteria in the form of attaining a minimum quality score can provide a simple and cost-effective alternative to the scoring of quality in tender submissions in professional service contracts. In this procedure, the scoring of quality serves merely to establish that the tenderer is capable of providing the service and to reject the tender submissions of those who fail to attain the threshold score. Thereafter the tender offers can be evaluated on the basis of price or price and preference.

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SANS 294:2004 Edition 1

Annex C (informative)

Selecting a standard form of contract C.1 Introduction C.1.1 Organizations should take account of the following when deciding upon which form of contract to use in their procurements: a) the complexity of the work; b) management capacity, capabilities and expectation of the parties and their agents; c) requirements for specific contracting and pricing strategies (see C.3); d) requirements relating to 1) the assignment and management of risk, 2) back-to-back contracts for the engagement of all types of subcontractors, and 3) the management of cost and time overruns; e) the ability and capacity of skilled people and resources within the organization to handle different administrative procedures for different categories and subcategories of contracts; f) satisfying desirable criteria (see C.2); and g) training requirements.

C.1.2 Choosing the right form of contract is a strategic decision that an organization should make.

C.2 Desirable criteria in standard forms of contract C.2.1 General The desirable criteria contained in this annex, which are not ranked in any order of precedence, provide a basis for the selection or drafting of a standard industry form of contract. They enable the "ideal" form of contract to be identified or drafted. It is recognized that, in practice, it might not be possible to meet all the criteria in a single form of contract. However, this should not preclude drafters of contracts from striving to do so, or organizations from selecting a standard form of contract which best meets the criteria.

C.2.2 Profesional services: knowledge-based expertise provided on the basis of trust C.2.2.1 Contracts which fall into this category include agreements with project managers, architects, engineers, quantity surveyors, attorneys, and other professionals providing services on a trust (fiduciary) basis, and generally referred to as consultants. These professionals are preferably in private practice and are independent. The standard of liability for the services is known as "reasonable skill and care" and this is usually insured under a professional indemnity policy.

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SANS 294:2004 Edition 1 C.2.2.2 The form of contract selected for this kind of service should contain provisions which reflect the desirable criteria outlined below. The contract should a) contain a specific undertaking by the parties to deal fairly with one another and with subconsultants, in an atmosphere of mutual trust and cooperation; b) provide for firm duties of teamwork, with shared financial motivation to pursue those objectives; (These should involve a general presumption to achieve "win-win" solutions to problems that might arise during the course of the contract term.) c) assign clear duties and responsibilities to the parties, which can be integrated with various professional service requirements, associated with as wide a range of professional services as possible; d) contain terms and conditions which are suitable for a wide spectrum of professional service requirements; e) provide a choice of pricing strategies which includes a lump sum, a percentage of project cost, time and expenses, and a term contract using a price list; f) empower the employer to sanction replacements of key people accepted at the contract formation stage and to monitor quality of service through a quality management system; g) obligate the parties to provide an early warning of events likely to lead to additional cost and time; h) contain flexible options for the transfer of rights from the consultant to the employer; i) provide for payment times of 30 d or less, with interest payable on late payments at rates of interest sufficiently high to deter late payment; j) use clear and unambiguous language, not contain unnecessarily complex provisions and provide guidance notes where necessary; and k) include pricing schedules illustrating the different pricing strategies that are likely to be used.

C.2.3 Services relating to the operation or maintenance of an existing facility, structure or system Contracts that fall into this category include maintenance of highways, operation and maintenance of an office park or an airport, or a materials handling system for a period of time (term). The characteristics of such a contract are the same as those of an engineering and construction works contract with the modifications listed below. The contract should a) provide options for procuring services on the basis of either pre-priced service-related activities, reimbursement of defined cost plus a tendered mark-up, or on a fee basis for performance of agreed targets linked to key performance indicators; b) require early warning of price increases and delays or matters adversely affecting the services;

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SANS 294:2004 Edition 1 c) change terminology, e.g. the use of "plans" instead of "design and programmes", and "access to site of work" instead of "possession of the site"; d) provide the employer with the option to take over the contractor’s equipment used for the services at the end of the contract term; e) prescribe the forms of subcontract that may be used; f) require prompt correction of non-compliance, with an obligation to correct defects whether notified or not; g) limit the contractor’s liability for damage to the employer’s property; and h) establish the insurance arrangements when working on the property of others.

C.2.4 Supplies contracts C.2.4.1 Supplies contracts that require sophisticated arrangements for importation of substantial items of plant should contain provisions which reflect the features listed below. The supplies contract should a) provide for a high standard of management and control for the supply and delivery of plant and materials; b) cater fully for the complexities of international trade by referring to the latest version of INCOTERMS, published by the International Chamber of Commerce; c) provide flexibility of application as a form of contract for a single delivery purchase, delivery of a pre-estimated range and quantity of goods in accordance with a delivery schedule, and as a calloff facility for the supply of a range of goods over an agreed term; d) be designed for the purchase of complex plant or components of plant designed specifically for a process facility or project and likely to have a mix of local and international sourcing. Examples include: switchgears, communication systems, cables and isolators with a high copper or aluminium content (or both), rolling stock for railway operators and projects, transformers, complex medical services industry equipment, complex mining and materials handling equipment, any plant and materials consumed which are not generally placed into service as a result of a project, components that require unique and high-cost transport arrangements or that have a high proportion of importation charges relative to the overall price; e) cater for original design by the supplier to performance criteria set by the purchaser with associated design acceptance criteria and the need to work to an approved programme; f) provide for off-site testing, some installation works on site and for commissioning work after delivery and installation; and g) provide for dealing with importation charges separately or for their inclusion in the price of the items being supplied.

C.2.4.2 Supplies for provision on a local, off-the-shelf basis may be covered by a simple one page order form and may be administered using one of the e-commerce systems now being introduced by many procurement offices.

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SANS 294:2004 Edition 1 C.2.5 Engineering and construction works contracts C.2.5.1 Engineering and construction works contracts should at least meet the following criteria: a) They should not contain unreasonable provisions which could unfairly prejudice the interests of any party. b) The conditions of tender should be completely separate from the conditions of contract and should permit the utilization of standard formats. c) They should not be tailor-made to suit particular technical specifications, or methods of measurement and evaluation. d) They should provide for an interrelated management system, which clearly defines the roles and duties of all persons involved. e) The employer’s representative identified in the contract should be fully empowered to act on the employer’s behalf. f) They should permit the appropriate allocation of risks for individual projects, with each risk being allocated to the party best able to manage, estimate and carry it. g) They should clearly set out the period within which interim payments shall be made to all participants, failing which they will have the automatic right to compensation by the payment of interest at a sufficiently high rate to deter slow payment. h) They should provide reasonable flexibility to accommodate both public body and private industry administrative practices. Such flexibility would permit, within limits, the selection of different periods allowed for payment, levels of surety, retention percentages, penalties, defects correction periods, limitations of liability for latent defects and contract insurance provisions. i) They should stipulate formal contractual relationships between the contractor and all subcontractors, whether nominated, selected or domestic, which provide for fair and equitable conditions of subcontract. j) They should encourage the role players to take all possible steps to avoid conflict, whilst providing for speedy dispute resolution by a pre-determined impartial dispute resolution procedure, should conflict arise. k) They should contain provisions, which are not prejudicial to either party, for both interim and final dispute resolution by an independent person.

C.2.5.2 In addition, it is recommended that engineering and construction works contracts also meet the following criteria: a) They should be suitable to use, across the full range and scope of engineering and building disciplines and commonly encountered strategies by any employer. (This could be achieved by an interlocking multi-discipline family of separate forms, each suitable for a different procurement route, or through the use of options within a single multi-discipline form, which covers the full range of procurement routes.) b) They should encourage cooperative attitudes with shared financial motivation to meet such obligations. This should result in a general objective to achieve "win-win" solutions to problems which might arise during the course of the project.

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SANS 294:2004 Edition 1 c) They should permit and encourage the application of the techniques of partnering between the employer and contractor in a manner that preserves contractual protection of rights. d) They should use clear and unambiguous language, not be unnecessarily complex, and contain guidance notes where necessary. e) They should encourage the employer to take all reasonable steps to avoid changes to preplanned scopes of work. However, where variations do occur, the contract should allow for these to be priced in advance of implementation. f) They should contain appropriate provisions for assessing interim payments by methods other than monthly evaluation only. g) They should provide for design to be carried out by either party to any predetermined extent. h) They should provide for standard subcontract agreements and other related documents which are compatible with main contracts. i) They should contain appropriate provisions to enable work which cannot be adequately described or specified at the time tenders are called for, to be readily executed and paid for when such work can be adequately specified.

C.2.6 Forms of subcontract Forms of subcontracts should not contain a) payment procedures based on a pay-when-paid, or pay-if-paid, system, b) a right to set off in favour of the contractor not provided for by law, c) unreasonable retention percentages and periods of retention after completion, d) conditions which are more onerous than those which exist in the principal contract, or e) provisions for dispute resolution only by means of arbitration or litigation.

C.3 Contracting and pricing strategies There are a number of contracting and pricing strategies encountered in the different categories of contract (see tables C.1 and C.2). Different pricing strategies can be used in conjunction with different contracting strategies. Commonly encountered contracting and pricing strategies associated with the various categories of contract are shown in table C.3. The selected forms of contract should make provision for the strategies that are to be used in the organization's contract.

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SANS 294:2004 Edition 1 Table C.1 — Descriptions of commonly encountered contracting strategies 1

2

Contracting strategy

Description

Batch order

Orders for supplies are placed in batches.

Construction management

Similar to a management contract, except that the trade contracts are between the employer and the various trade contractors.

Design and build

The contractor undertakes most of the design and all construction in accordance with the employer's brief and his detailed tender submission, usually for a lump sum price.

Develop and construct

Similar to design and build, except that the employer issues a concept design on which tenders are based.

Design by employer

The contractor undertakes only construction on the basis of full designs issued by the employer.

Management contract

A management contractor is appointed to engage and manage a number of trade contractors to carry out construction on the basis of designs issued by the employer, as they are completed. The trade contracts are between the management contractor and the various trade contractors.

Term

A framework agreement to order services or supplies as required during the agreed period (the term) is put in place.

Single purchase

One item is purchased at a time.

Table C.2 — Descriptions of commonly encountered pricing strategies 1 Pricing strategy

2 Description

Activity schedules

The contractor undertakes to break the scope of work down into activities and price each activity as a lump sum, which he is paid on completion of the activity. The total of the activity prices is the lump sum price for the contract work.

Bill of quantities

The contractor is paid an amount for the item of work in the bill which is the rate for the work multiplied by the quantity completed.

Cost reimbursable

The contractor is paid an agreed percentage fee to cover his overheads and profit and is reimbursed at market-related rates for predefined cost items.

Indefinite delivery contract (price agreement)

Unit rates are agreed. Payment is based on time actually taken.

Percentage fee

Based on the estimated or actual project construction cost or the cost of goods inspected or procured.

Price list

A list of prices is agreed. Payment is based on the agreed price.

Quantity discount

The price of the supplies reduces in accordance with the quantity that is purchased.

Retainer or contingency fee (or both)

The retainer fees are fixed and the success fee is usually based on a percentage of the sale price or the assets.

Target price

The contractor is paid for work done on a cost-reimbursable basis and the difference between the final cost of the works and a target price agreed at the conclusion of the contract is shared between the contractor and the employer in accordance with a pre-agreed formula.

Time based

Payment is based on agreed hourly, weekly or monthly rates for staff named in the contract and on agreed rates and reimbursable items. Typically, a ceiling amount is provided for.

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SANS 294:2004 Edition 1 Table C.3 — Commonly encountered combinations of contracting and pricing strategies 1

2

3

Category and subcategory

Contracting strategy

Pricing strategy

Engineering and construction works

Construction management Design and build Design by employer Develop and construct Management contract

Activity schedules Bill of quantities Cost reimbursable Target cost

Services

Single purchase Term

Activity schedules Percentage fee Indefinite delivery contract (price agreement) Price list Retainer or contingency fee (or both) Time based

Supplies

Single purchase Batch order Term

Price list Quantity discounts

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SANS 294:2004 Edition 1

Annex D (informative)

Establishing a preferential procurement policy D.1 General D.1.1 Well-formulated preferential procurement policies should outline clear policy themes, establish priorities where there is more than one policy theme and project policy outcomes. Such policies should enable short-term and medium-term targets or goals (deliverables) to be established when the policy is put into operation (see D.3). SANS 10396 provides a framework for the identification of socio-economic policy objectives and targeted enterprises and targeted labour. Sustainable development objectives, in addition to the poverty alleviation objectives described in SANS 10396, may include minimizing the harmful effects of development on the local environment, the establishment and strengthening of indigenous building materials and the promotion of the increased use of environmentally sound goods, building materials and construction technologies. Goals at project or contract level should be a) clearly defined to make them contractually enforceable, b) measurable and quantifiable to allow them to be monitored and evaluated, and c) verifiable and auditable for reasons of transparency and to ensure that policy intent is achieved. Goals at programme level need to be aggregated and evaluated to facilitate the monitoring of progress towards the attainment of specific policy objectives.

D.1.2 SANS 10396 establishes the principles and considerations which should be taken into account in the development of a preferential procurement policy. The targeted procurement procedures set out in SANS 10396 provide a framework within which a) goals can be set, monitored and evaluated, both at a project and programme level, b) access to markets can be provided for target groups, c) incentives can be provided for contractors to satisfy the objectives of an organization’s preferential procurement policy in the performance of the contract, and d) the participation of targeted enterprises and targeted labour can be secured. An organization’s preferential procurement policy should establish a broad framework for preferencing and not contain detailed implementation procedures. It should, as indicated in the example below, allow those responsible for implementation to decide on the exact definitions of the target groups, the appropriate targeting strategies and the allocation of points for preferences to achieve the best outcomes in particular procurements. Figure D.1 shows the recommended approach to establishing and implementing preferential procurement policies.

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SANS 294:2004 Edition 1

Establish preferential procurement policy i.e. • select the specific goals which are to be pursued, • set quantitative targets for the selected goals, and • establish broad procedures to implement the policy.

Policy formulation and annual review

Consider proposed procurement in terms of policy and progress made towards targets, and identify which policy theme is likely to yield the most favourable outcome for the proposed contracting strategy and satisfy policy priorities in a balanced manner.

Solicit tender offers, evaluate preferences in tender offers, record relevant data relating to preferences and monitor for compliance with requirements during the performance of the contract.

Evaluate policy outcomes in terms of programmes and themes, prepare annual report which documents the targeting strategies that were used and the progress made towards the realization of targets and make recommendations regarding the revision/ continuation of the policy and targeting strategies, if any.

Recommendation 1 Continue without modifications or with modifications to targeting strategies.

Recommendation 2 Modify policy.

Policy implementation

Formulate appropriate targeting strategy, decide on definitions for specific goals and allocation of preference points, determine the means by which the goals are to be measured, quantified and monitored for compliance and incorporate requirements for preferencing in procurement documents.

Recommendation 4 Introduce supply side measures to overcome identified constraints.

Recommendation 3 Abandon policy/declare that policy intent has been met.

Figure D.1 — Recommended approach to formulating and implementing preferential procurement policies

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SANS 294:2004 Edition 1

D.2 Monitoring and evaluation D.2.1 Monitoring The monitoring of the attainment of socio-economic deliverables at project level cannot commence until a) all aspects of the deliverables have been clearly defined and accepted by all the parties to a contract, b) the criteria for measuring and quantifying the attainment of deliverables are understood, and c) the method by which the deliverables can be audited and verified is laid down. The targeted procurement procedures contained in SANS 10396 provide a framework within which all of the above can be achieved before the award of a contract is made. This enables monitoring for compliance in respect of social and economic objectives to commence as soon as the contract is effected, both at project and programme level.

D.2.2 Evaluation Any evaluation of the degree of success achieved in providing social and economic deliverables is dependent on effective monitoring. Evaluation is an ongoing process and should not be deferred. This is necessary to ensure that any inadequate provision of deliverables is detected at an early enough stage to remedy the situation. Targeted procurement procedures contained in SANS 10396 facilitate this. The following data should, as a minimum, be gathered for evaluation purposes: a) the financial offer of the lowest acceptable tender used for the scoring of evaluation points for price; and b) the financial offer of the successful tenderer and details pertaining to the specific goals for which a preference is granted. A set of indices for a particular programme to evaluate the range of socio-economic objectives associated with a preferential procurement policy should be developed in line with SANS 10396.

D.3 Example: Job creation in the civil engineering infrastructure Focus:

Job creation by increasing employment per unit of expenditure in civil engineering construction (i.e. the ratio of total construction costs, excluding VAT but including any management fees directly related to construction activities, to the total volume of employment generated (man-hours) in the construction of civil engineering infrastructure).

Key performance indicators:

Expenditure on semi-skilled and unskilled workers expressed as a percentage of the total cost of construction.

Target:

At least 30 % of the cost of construction represents the expenditure on semi-skilled and unskilled workers.

Direct impact of procurement policy:

Provide incentive through preferences to contractors to select construction work methods and technologies which promote the creation of employment.

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SANS 294:2004 Edition 1 Indirect effects of procurement policy:

Unskilled and semi-skilled workers will receive some training. Money will flow from the project into the local community.

Strategy for implementation:

Policy for the employment of temporary (contract-specific) workers, acceptable to stakeholders, will be put in place in order to minimize risk exposure. A mechanism in terms of which contractors can define the portion of the excavation works which will be excavated by hand methods will be included in procurement documents in line with annex G of SANS 10396:2003. Tenderers will be permitted to choose which road-construction technology they wish to make use of. No tender evaluation points will be granted in respect of contract participation goals less than 10 %. Tenderers will be granted preferences in proportion to their tendered contract participation goal with the maximum points being awarded to the tenderer with the highest tendered contract participation goal.

Target groups:

South African citizens who permanently reside within the boundaries of .............................. and earn wages and allowances amounting to less than R …..…. per hour.

Actions:

Give preferences for participation by targeted labour in the evaluation of tenders. Gather statistics on employment generated in different types of civil engineering infrastructure projects. Review labour-based technologies to enable tenderers to exercise a wide choice of technologies in contracts.

Targeting strategies:

Direct participation using SANS 1914-5, depending upon the nature of the project. (Zero points for 10 % contract participation goals and maximum points granted to the tenderer offering the highest contract participation goal (weighting = 1,0).)

Data capture:

Capture the following data upon award and termination/completion of the contract in respect of ● choices/options selected, ● goals tendered and achieved, ● price (successful tenderer and price used in determination of the preference).

Monitoring for contract compliance:

Monitor for compliance with conditions attached to the granting of preferences Monitor the attainment of contract participation goals in terms of annex H of SANS 10396:2003.

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SANS 294:2004 Edition 1 Evaluation:

Calculate increase in employment per unit of expenditure from the following formula:

∑ ( A × B) ∑ (B × C ) where A

is the contract participation goal for each contract;

B

is the value of a particular contract;

C

is the average expenditure on labour where conventional plant-based construction methods are used.

Produce reports on a quarterly basis which provide details at both project and programme level. Review:

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The policy outcomes, targeting strategy used to achieve policy outcomes, and the selected technologies in specific projects will be reviewed on an annual basis with a view to improving performance in subsequent years.

SANS 294:2004 Edition 1

Annex E (normative)

Tender data SANS 10403 defines tender data as a "document that establishes the tenderer’s obligations in submitting a tender and the employer’s undertakings in administering the tender process and evaluating tender offers". This annex provides generic tender data which shall be used in all procurement conducted in accordance with the provisions of this standard. The tender data contained in columns 1 and 2 of table E.1 shall, as appropriate, be included in procurement documents. Table E.1 — Tender data to be included in procurement documents 1

2

3

Subclause

Recommended wording

Guidance notes

The conditions of tender are the standard conditions of tender as contained in annex F of SANS 294:2004. The standard conditions of tender for procurements make several references to the tender data. The tender data shall have precedence in the interpretation of any ambiguity or inconsistency between it and the standard conditions of tender. Each item of data given below is cross-referenced to the subclause in the standard conditions of tender to which it mainly applies. F.1.1

The employer is . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter data

F.1.2

The tender documents issued by the employer comprise:

Enter data

Volume 1: Tendering procedures Tender notice and invitation to tender Tender data Volume 2: Returnable documents List of returnable documents Form of offer and acceptance Contract data (part 2) Pricing data Tender schedules Volume 3: The contract Part 1: Agreements and contract data (part 1) Part 2: Pricing data Pricing instructions Part 3: Scope of work Part 4: Site information F.1.4

The employer’s agent is: Name: ................................................................................................... Address: ...............................................................................................

Enter data (name of employee or external agent)

.............................................................................................................. Tel: .............................................

Fax: ............................................

E-mail: .................................................................................................. F.2.1

Only those tenderers who satisfy the following eligibility criteria are eligible to submit tenders:

Modify statement, state eligibility criteria or omit item

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SANS 294:2004 Edition 1 Table E.1 (continued) 1

2

3

Subclause

Recommended wording

Guidance notes

F.2.7

The arrangements for a compulsory/non-compulsory clarification meeting are: Location: ............................................................................................... Date: ...........................................

If not a requirement, replace with "There are no compulsory or clarification meetings."

Starting time: ..............................

Confirmation of attendance to be notified at least one full working day in advance to: Name: ................................................................................................... Tel: ............................................. F.2.12

Fax: ............................................

If a tenderer wishes to submit an alternative tender offer, the only criteria permitted for such alternative tender offer are:

Omit if not a requirement

.................................................... F.2.13

Tenderers may offer to provide any of the following parts, or combinations thereof, of the works, services or supplies identified in the contract data:

Omit if not permitted

.................................................... F.2.13.3

Parts of each tender offer communicated on paper shall be submitted as an original, plus . . . . . . . . . copies.

Enter the required information

F.2.13.5

The employer’s address for delivery of tender offers and identification details to be shown on each tender offer package are:

Enter the required information

Location of tender box: ......................................................................... Physical address: .................................................................................. .............................................................................................................. Identification details: ............................................................................. F.2.13 F.3.5

A two-envelope procedure will not be followed.

Delete the word "not" if a two-envelope procedure is required

F.2.15

The closing time for submission of tender offers is:

Enter the required information

................... hours on

60

.......................... (day)

......................... (date)

F.2.15

Telephonic, telegraphic, telex, facsimile or e-mailed tender offers will not be accepted.

If telegraphic, telex, facsimile or e-mailed tender offers will be accepted, delete the word "not" from this sentence

F.2.16

The tender offer validity period is . . . . . . . . . . weeks.

State time period

F.2.19

Access shall be provided for the following inspections, tests and analysis: State requirements

SANS 294:2004 Edition 1 Table E.1 (continued) 1

2

3

Subclause

Recommended wording

Guidance notes

F.2.22

Return all retained tender documents within 28 d after the expiry of the validity period.

Omit if not a requirement

F.2.23

The following certificates are to be provided:

State the certificates that the tenderer needs to submit with his tender, e.g. an original valid Tax Clearance Certificate issued by the South African Revenue Services

.............................................................................................................. .............................................................................................................. .............................................................................................................. F.3.4

The time and location for opening of the tender offers are: Time .........................

.............................. on

......................... (date)

Location: ............................................................................................... F.3.11

The procedure for evaluation of responsive tender offers is: Methods:......................................

F.3.11

The quality criteria and maximum score in respect of each of the criteria are as follows: Description of quality criteria and subcriteria

Maximum number of tender evaluation points

Provide data or state what the arrangements for opening are (see 6.5.3.1) State whether method 1, 2, 3 or 4 applies (see table 3) Omit item if method 1 or 2 applies. Complete table (see tables 2 and 3)

Total evaluation points for quality (WQ) F.3.11

The minimum number of evaluation points for quality is ......................................................................

F.3.11

The value of W1 used in the formula for scoring financial offers is ......................................................................

Omit if method 1 or 2 applies or if there is no minimum number of points for quality Omit item if method 1 applies. Enter the required information (see table 3)

F.3.11

The financial offer will be scored in terms of formula . . . . . . . . . . . . . . of Omit if method 1 is table . . . . . . of SANS 294:2004. used. Insert formula 1 or 2 and table 4 or 5, as appropriate

F.3.11

Up to . . . . . tender evaluation points (WP) will be awarded to tenderers who complete the preferencing schedule and who are found to be eligible for the preference claimed.

Omit if method 1 or 3 applies. Enter in the maximum number of evaluation points for preference. Adjust wording to text as required

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SANS 294:2004 Edition 1 Table E.1 (concluded) 1

2

3

Subclause

Recommended wording

Guidance notes

F.3.13.1

Tender offers will only be accepted on condition that ......................................................................

F.3.18

The number of paper copies of the signed contract to be provided by the employer is . . . . . .

Enter the required information

The additional conditions of tender are:

Such conditions should only be used on very rare occasions. It is easier to use tender schedules for the purpose of soliciting information to be returned with the tender offer, including design details for design and build contracts. The conditions of tender state that all schedules shall be completed and submitted as part of the tender offer

1

.........................................................................................................

2

.........................................................................................................

3

.........................................................................................................

Tenderers may not form any joint ventures without the permission of the employer.

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Omit it there is not a requirement. Insert particulars in accordance with the organization’s procurement policy, e.g. the tenderer provides written proof from the South African Revenue Service that the tenderer has no outstanding tax obligations or has made arrangements to meet outstanding tax obligations

Use this condition where the qualified procedure is used and a limited number of respondents are short listed, i.e. where competition may be compromised by joint venture formation

SANS 294:2004 Edition 1

Annex F (normative)

Standard conditions of tender F.1 General F.1.1 Actions The employer and each tenderer submitting a tender offer shall comply with the conditions of tender. In their dealings with each other, they shall discharge their duties and obligations, as set out in F.2 and F.3, timeously and with integrity, and behave equitably, honestly and transparently.

F.1.2 Tender documents The documents issued by the employer for the purpose of a tender offer are listed in the tender data.

F.1.3 Interpretation F.1.3.1 The tender data and additional requirements contained in the tender schedules that are included in the returnable documents are deemed to be part of the conditions of tender.

F.1.3.2 The conditions of tender, the tender data and tender schedules which are only required for tender evaluation purposes, shall not form part of any contract arising from the invitation to tender.

F1.4 Communication and employer's agent Each communication between the employer and a tenderer shall be to or from the employer's agent only, and in a form that can be read, copied and recorded. Writing shall be in the English language. The employer shall not take any responsibility for non-receipt of communications from or by a tenderer. The name and contact details of the employer's agent are stated in the tender data.

F.1.5 The employer's right to accept or reject any tender offer F.1.5.1 The employer may accept or reject any variation, deviation, tender offer, or alternative tender offer, and may cancel the tender process and reject all tender offers at any time before the formation of a contract. The employer shall not accept or incur any liability to a tenderer for such cancellation and rejection, but shall give reasons for such action.

F.1.5.2 After the cancellation of a tender process or the rejection of all tender offers the employer may abandon the proposed procurement and re-issue a similar tender notice and invitation to tender not less than six months after the closing date for tender offers or have it performed in another manner at any time.

F.2 Tenderer's obligations F.2.1 Eligibility Submit a tender offer only if the tenderer satisfies the criteria stated in the tender data and if the tenderer, or any of his principals, is not under any restriction to do business with the employer.

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SANS 294:2004 Edition 1 F.2.2 Cost of tendering Accept that the employer will not compensate the tenderer for any costs incurred in the preparation and submission of a tender offer, including the costs of any testing necessary to demonstrate that aspects of the offer comply with requirements.

F.2.3 Check documents Check the tender documents on receipt for completeness and notify the employer of any discrepancy or omission.

F.2.4 Confidentiality and copyright of documents Treat as confidential all matters arising in connection with the tender. Use and copy the documents issued by the employer only for the purpose of preparing and submitting a tender offer in response to the invitation.

F.2.5 Reference documents Obtain, as necessary for submitting a tender offer, copies of the latest versions of standards, specifications, conditions of contract and other publications, which are not attached but which are incorporated into the tender documents by reference.

F.2.6 Acknowledge addenda Acknowledge receipt of addenda to the tender documents, which the employer may issue, and if necessary apply for an extension to the closing time stated in the tender data, in order to take the addenda into account.

F.2.7 Site visit and clarification meeting Attend, where required, a site visit and clarification meeting at which tenderers may familiarize themselves with aspects of the proposed work, services or supply, and raise questions. Details of the meeting(s) are stated in the tender data

F.2.8 Seek clarification Request clarification of the tender documents, if necessary, by notifying the employer at least five working days before the closing time stated in the tender data.

F.2.9 Insurance Be aware that the extent of insurance to be provided by the employer (if any) might not be for the full cover required in terms of the conditions of contract identified in the contract data. The tenderer is advised to seek qualified advice regarding insurance.

F.2.10 Pricing the tender offer F.2.10.1 Include in the rates, prices, and the tendered total of the prices (if any) all duties, taxes (except value-added tax (VAT), and other levies payable by the successful tenderer, such duties, taxes and levies being those applicable 14 d before the closing time stated in the tender data.

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SANS 294:2004 Edition 1 F.2.10.2 Show VAT payable by the employer separately as an addition to the tendered total of the prices.

F.2.10.3 Provide rates and prices that are fixed for the duration of the contract and not subject to adjustment except as provided for in the conditions of contract identified in the contract data. F.2.10.4 State the rates and prices in Rand unless instructed otherwise in the tender data. The conditions of contract identified in the contract data may provide for part payment in other currencies.

F.2.11 Alterations to documents Do not make any alterations or additions to the tender documents, except to comply with instructions issued by the employer, or alterations or additions necessary to correct errors made by the tenderer. All signatories to the tender offer shall initial all such alterations. Erasures and the use of masking fluid are prohibited.

F.2.12 Alternative tender offers F.2.12.1 Submit alternative tender offers only if a main tender offer, strictly in accordance with all the requirements of the tender documents, is also submitted. The alternative tender offer is to be submitted with the main tender offer together with a schedule that compares the requirements of the tender documents with the alternative requirements the tenderer proposes. F.2.12.2 Accept that an alternative tender offer may be based only on the criteria stated in the tender data or criteria otherwise acceptable to the employer.

F.2.13 Submitting a tender offer F.2.13.1 Submit a tender offer to provide the whole of the works, services or supply identified in the contract data, unless stated otherwise in the tender data. F.2.13.2 Return all returnable documents to the employer after completing them in their entirety, either electronically (if they were issued in electronic format) or by writing in black ink. F.2.13.3 Submit the parts of the tender offer communicated on paper as an original plus the number of copies stated in the tender data, with an English translation of any documentation in a language other than English, and the parts communicated electronically in the same format as they were issued by the employer. F.2.13.4 Sign the original and all copies of the tender offer where required in terms of the tender data. The employer will hold all authorized signatories liable on behalf of the tenderer. Signatories for tenderers proposing to contract as joint ventures shall state which of the signatories is the lead partner whom the employer shall hold liable for the purpose of the tender offer. F.2.13.5 Seal the original and each copy of the tender offer as separate packages marking the packages as "ORIGINAL" and "COPY". Each package shall state on the outside the employer's address and identification details stated in the tender data, as well as the tenderer's name and contact address. F.2.13.6 Where a two-envelope system is required in terms of the tender data, place and seal the returnable documents listed in the tender data in an envelope marked "financial proposal" and place the remaining returnable documents in an envelope marked "technical proposal". Each envelope shall state on the outside the employer's address and identification details stated in the tender data, as well as the tenderer's name and contact address.

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SANS 294:2004 Edition 1 F.2.13.7 Seal the original tender offer and copy packages together in an outer package that states on the outside only the employer's address and identification details as stated in the tender data. F.2.13.8 Accept that the employer will not assume any responsibility for the misplacement or premature opening of the tender offer if the outer package is not sealed and marked as stated.

F.2.14 Information and data to be completed in all respects Accept that tender offers, which do not provide all the data or information requested completely and in the form required, may be regarded by the employer as being non-responsive.

F.2.15 Closing time F.2.15.1 Ensure that the employer receives the tender offer at the address specified in the tender data not later than the closing time stated in the tender data. Proof of posting shall not be accepted as proof of delivery. The employer shall not accept tender offers submitted by telegraph, telex, facsimile or e-mail, unless stated otherwise in the tender data. F.2.15.2 Accept that, if the employer extends the closing time stated in the tender data for any reason, the requirements of the conditions of tender apply equally to the extended deadline.

F.2.16 Tender offer validity F.2.16.1 Hold the tender offer(s) valid for acceptance by the employer at any time during the validity period stated in the tender data after the closing time stated in the tender data. F.2.16.2 If requested by the employer, consider extending the validity period stated in the tender data for an agreed additional period.

F.2.17 Clarification of tender offer after submission Provide clarification of a tender offer in response to a request to do so from the employer during the evaluation of tender offers. This may include providing a breakdown of rates or prices and correction of arithmetical errors by the adjustment of certain rates or item prices (or both). No change in the total of the prices or substance of the tender offer should be sought, offered, or permitted. The total of the prices stated by the tenderer shall be binding upon the tenderer.

F.2.18 Provide other material F.2.18.1 Provide, on request by the employer, any other material that has a bearing on the tender offer, the tenderer’s commercial position (including notarized joint venture agreements), preferencing arrangements, or samples of materials, considered necessary by the employer for the purpose of a full and fair risk assessment. Should the tenderer not provide the material, or a satisfactory reason as to why it cannot be provided, by the time for submission stated in the employer’s request, the employer may regard the tender offer as being non-responsive. F.2.18.2 Dispose of samples of materials, where required.

F.2.19 Inspections, tests and analysis Provide access during working hours to premises for inspections, tests and analysis as provided for in the tender data.

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SANS 294:2004 Edition 1 F.2.20 Submit securities, bonds, policies, etc. If requested, submit for the employer’s acceptance before formation of the contract, all securities, bonds, guarantees, policies and certificates of insurance required in terms of the conditions of contract identified in the contract data.

F.2.21 Check final draft Check the final draft of the contract provided by the employer within the time available for the employer to issue the contract.

F.2.22 Return of other tender documents If so instructed by the employer, return all retained tender documents within 28 d after the expiry of the validity period stated in the tender data.

F.2.23 Certificates Include in the tender submission or provide the employer with any certificates as stated in the tender data.

F.3 Employer’s undertakings F.3.1 Respond to clarification Respond to a request for clarification received up to five working days before the tender closing time stated in the tender data and notify all tenderers who drew procurement documents.

F.3.2 Issue addenda If necessary, issue addenda that may amend or amplify the tender documents to each tenderer during the period from the date of the tender notice until 7 d before the tender closing time stated in the tender data. If, as a result of the issuing of addenda, a tenderer applies for an extension to the closing time stated in the tender data, the employer may grant such extension and shall then notify all tenderers who drew documents.

F.3.3 Return late tender offers Return tender offers received after the closing time stated in the tender data, unopened (unless it is necessary to open a tender submission to obtain a forwarding address), to the tenderer concerned.

F.3.4 Opening of tender submissions F.3.4.1 Unless the two-envelope system is to be followed, open valid tender submissions in the presence of tenderers’ agents who choose to attend at the time and place stated in the tender data. Tender submissions for which acceptable reasons for withdrawal have been submitted will not be opened.

F.3.4.2 Announce at the public meeting held immediately after the opening of tender submissions, at a venue indicated in the tender data, the name of each tenderer whose tender offer is opened, the total of his prices, preferences claimed and time for completion, if any, for the main tender offer only.

F.3.4.3 Make available the name of each tenderer whose tender offer is opened, the total of his prices, if applicable, preferences claimed and time for completion (if any) for the main tender offer only.

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SANS 294:2004 Edition 1 F.3.5 Two-envelope system F.3.5.1 Where stated in the tender data that a two-envelope system is to be followed, open only the technical proposal of valid tenders in the presence of tenderers’ agents who choose to attend at the time and place stated in the tender data and announce the name of each tenderer whose technical proposal is opened.

F.3.5.2 Evaluate the quality of the technical proposals offered by tenderers, then advise tenderers who remain in contention for the award of the contract of the time and place when the financial proposals will be opened. Open only the financial proposals of tenderers who score in the quality evaluation more than the minimum number of points for quality stated in the tender data, and announce the score obtained for the technical proposals and the total price and any preferences claimed. Return unopened financial proposals to tenderers whose technical proposals failed to achieve the minimum number of points for quality.

F.3.6 Non-disclosure Do not disclose to tenderers, or to any other person not officially concerned with such processes, information relating to the evaluation and comparison of tender offers, the final evaluation price and recommendations for the award of a contract, until after the award of the contract to the successful tenderer.

F.3.7 Grounds for rejection and disqualification Determine whether there has been any effort by a tenderer to influence the processing of tender offers and instantly disqualify a tenderer (and his tender offer) if it is established that he engaged in corrupt or fraudulent practices.

F.3.8 Test for responsiveness F.3.8.1 Determine, on opening and before detailed evaluation, whether each tender offer properly received: a) complies with the requirements of the conditions of tender, b) has been properly and fully completed and signed, and c) is responsive to the other requirements of the tender documents.

F.3.8.2 A responsive tender is one that conforms to all the items, conditions, and specifications of the tender documents without material deviation or qualification. A material deviation or qualification is one which, in the employer's opinion, would a) detrimentally affect the scope, quality, or performance of the works, services or supply identified in the scope of work, b) change the employer's or the tenderer's risks and responsibilities under the contract, or c) affect the competitive position of other tenderers presenting responsive tenders, if it were to be rectified.

F.3.8.3

Reject a non-responsive tender offer, and do not allow it to be subsequently made responsive by correction or withdrawal of the non-conforming deviation or reservation.

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SANS 294:2004 Edition 1 F.3.9 Arithmetical errors F.3.9.1 Check responsive tender offers for arithmetical errors, correcting them in the following manner: a) Where there is a discrepancy between the amounts in figures and in words, the amount in words shall govern. b) If a bill of quantities (or schedule of quantities or schedule of rates) applies and there is an error in the line item total resulting from the product of the unit rate and the quantity, the line item total shall govern and the rate shall be corrected. Where there is an obviously gross misplacement of the decimal point in the unit rate, the line item total as quoted shall govern, and the unit rate shall be corrected. c) Where there is an error in the total of the prices, either as a result of other corrections required by this checking process or in the tenderer's addition of prices, the total of the prices shall govern and the tenderer will be asked to revise selected item prices (and their rates if a bill of quantities applies) to achieve the tendered total of the prices.

F.3.9.2 Consider the rejection of a tender offer if the tenderer does not correct or accept the correction of his arithmetical errors in the manner described in F.3.9.1.

F.3.10 Clarification of a tender offer Obtain clarification from a tenderer on any matter that could give rise to ambiguity in a contract arising from the tender offer.

F.3.11 Evaluation of tender offers F.3.11.1 Appoint an evaluation panel of not less than three persons. Reduce each responsive tender offer to a comparative offer and evaluate it using the tender evaluation methods that are indicated in the tender data and described as methods 1, 2, 3 and 4. F.3.11.2 Method 1: In the case of a financial offer: a) Rank tender offers from the most favourable to the least favourable comparative offer. b) Recommend the highest ranked tenderer for the award of the contract, unless there are compelling and justifiable reasons not to do so.

F.3.11.3 Method 2: In the case of a financial offer and preferences: a) Score tender evaluation points for each financial offer. b) Confirm that tenderers are eligible for the preferences claimed and, if so, score tender evaluation points for preferencing. c) Calculate total tender evaluation points. d) Rank tender offers from the highest number of tender evaluation points to the lowest. e) Recommend the tenderer with the highest number of tender evaluation points for the award of the contract, unless there are compelling and justifiable reasons not to do so.

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SANS 294:2004 Edition 1 F.3.11.4 Method 3: In the case of a financial offer and quality: a) Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the tender data, if any. b) Score tender evaluation points for each financial offer. c) Calculate the total tender evaluation points. d) Rank tender offers from the highest number of tender evaluation points to the lowest. e) Recommend tenderer with the highest number of tender evaluation points for the award of the contract, unless there are compelling and justifiable reasons not to do so.

F.3.11.5 Method 4: In the case of a financial offer, quality and preferences: a) Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the tender data, if any. b) Score tender evaluation points for each financial offer. c) Confirm that tenderers are eligible for the preferences claimed and, if so, score tender evaluation points for preferencing. d) Calculate total tender evaluation points. e) Rank tender offers from the highest number of tender evaluation points to the lowest. f) Recommend the tenderer with the highest number of tender evaluation points for the award of the contract, unless there are compelling and justifiable reasons not to do so.

F.3.11.6 Score financial offers, preferences and quality, as relevant, to two decimal places. F.3.11.6.1 Scoring financial offers Score the financial offers of the remaining responsive tender offers using the following formula: NFO = W1 × A where NFO is the number of tender evaluation points awarded for the financial offer;

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W1

is the maximum possible number of tender evaluation points awarded for the financial offer as stated in the tender data;

A

is the number calculated using the formula and option described in table F.1 as stated in the tender data.

SANS 294:2004 Edition 1 Table F.1 — Formulae for calculating the value of A

a

a

1

2

3

4

Formula

Basis for comparison

Option 1

Option 2

1

Highest price or discount

(1 +

(P − Pm ) ) Pm

P/Pm

2

Lowest price or percentage commission/fee

(1 −

(P − Pm ) ) Pm

Pm/P

Pm is the comparative offer of the most favourable comparative offer. P

is the comparative offer of the tender offer under consideration.

F.3.11.6.2 Scoring quality Score quality in each of the categories in accordance with the tender data and calculate the total score for quality.

F.3.12 Insurance provided by the employer If requested by the proposed successful tenderer, submit for the tenderer's information the policies or certificates of insurance (or both) which the conditions of contract identified in the contract data require the employer to provide.

F.3.13 Acceptance of tender offer F.3.13.1 Accept the tender offer only if the tenderer complies with the legal requirements, if any, stated in the tender data. F.3.13.2 Notify the successful tenderer of the employer's acceptance of his tender offer by completing and returning one copy of the form of offer and acceptance before the expiry of the validity period stated in the tender data, or agreed additional period. Provided that the form of offer and acceptance does not contain any qualifying statements, it will constitute the formation of a contract between the employer and the successful tenderer as described in the form of offer and acceptance.

F.3.14 Notice to unsuccessful tenderers After the successful tenderer has acknowledged the employer’s notice of acceptance, notify other tenderers that their tender offers have not been accepted.

F.3.15 Prepare contract documents If necessary, revise documents that shall form part of the contract and that were issued by the employer as part of the tender documents to take account of a) addenda issued during the tender period, b) inclusion of some of the returnable documents, c) other revisions agreed between the employer and the successful tenderer, and d) the schedule of deviations attached to the form of offer and acceptance, if any.

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SANS 294:2004 Edition 1 F.3.16 Issue final contract Prepare and issue the final draft of contract documents to the successful tenderer for acceptance as soon as possible after the date of the employer's signing of the form of offer and acceptance (including the schedule of deviations, if any). Only those documents that the conditions of tender require the tenderer to submit, after acceptance by the employer, shall be included.

F.3.17 Complete adjudicator's contract Unless alternative arrangements have been agreed or otherwise provided for in the contract, arrange for both parties to complete formalities for appointing the selected adjudicator at the same time as the main contract is signed.

F.3.18 Provide copies of the contracts Provide to the successful tenderer the number of copies stated in the tender data of the signed copy of the contract as soon as possible after completion and signing of the form of offer and acceptance.

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SANS 294:2004 Edition 1

Annex G (normative)

Submission data associated with the calling for expressions of interest This annex provides generic submission data which shall be used in all procurement conducted in accordance with the provisions of this standard. Procurement documents for the calling for expressions of interest should be developed around the headings contained in table G.1. The submission data contained in columns 1 and 2 of table G.2 shall, as appropriate, be included in procurement documents. Table G.1 — Recommended format for documents associated with the calling for expressions of interest 1

2 Contents

Number

Heading

3 Function and broad outline of contents

Proposal procedures E1.1

Notice and invitation to submit expressions of interest

Alerts respondents to submit their credentials in order to be invited to submit tenders should they satisfy stated criteria. This document should contain sufficient information to enable them to respond appropriately.

E1.2

Submission data

States what the applicable conditions for the calling for expressions of interest are and where they may be found. Submission data also provide the variables for standardized conditions or for the calling for expressions of interest.

Returnable documents E2.1

List of returnable documents

Ensures that everything the employer requires a respondent to include in his submission is included in, or returned with, such a submission.

E2.2

Submission schedules

Contains documents that the respondent is required to complete for the purpose of evaluating submissions.

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SANS 294:2004 Edition 1 Table G.2 — Submission data to be included in procurement documents 1

2

3

Subclause

Recommended wording

Guidance notes

The conditions for the calling for expressions of interest are the standard conditions for calling for expressions of interest as contained in annex H of SANS 294:2004.

–

The standard conditions for calling for expressions of interest make several references to the submission data. The submission data shall have precedence in the interpretation of any ambiguity or inconsistency between it and the standard conditions for calling for expressions of interest. Each item of data given below is cross-referenced to the subclause in the standard conditions for calling for expressions of interest to which it mainly applies. H.1.1

The employer is ............................................

Enter data

H.1.2

The documents associated with the calling for expressions of interest issued by the employer comprise:

Enter or amend data

Submission procedures Invitation and notice for submissions of expressions of interest Submission data Returnable documents List of returnable documents Submission schedules H.1.4

The employer’s agent is: Name: ...................................................................................................

Enter data (name of employee or external agent)

Address: ............................................................................................... .............................................................................................................. Tel: .............................................

Fax: ............................................

E-mail: .................................................................................................. H.2.1

Only those respondents who satisfy the following eligibility criteria are eligible to submit expressions of interest:

Modify statement, state eligibility criteria or omit item

.............................................................................................................. H.2.5

The arrangements for a clarification meeting are: Location: ............................................................................................... Date: ...........................................

Starting time: ..............................

Confirmation of attendance to be notified at least one full working day in advance to: Name: ................................................................................................... Tel: .............................................

Fax: ............................................

E-mail: ..................................................................................................

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Omit if not a requirement

SANS 294:2004 Edition 1 Table G.2 (concluded) 1

2

3

Subclause

Recommended wording

Guidance notes

H.2.7

The employer’s address for delivery of submissions and identification details to be shown on each submission package are:

Enter or amend data

Location of tender box: ......................................................................... Physical address: .................................................................................. .............................................................................................................. Identification details: ............................................................................. H.2.9

The closing time for submissions is: ................... hours on

.......................... (day)

Enter or amend data ......................... (date)

H.2.9

Telephonic, telegraphic, telex, facsimile or e-mailed submissions offers will not be accepted.

If telegraphic, telex, facsimile or e-mailed tender offers are acceptable, delete the word "not" from this sentence

H.3.3

Late submissions will be dealt with as follows:

State how they are to be dealt with, e.g. will be returned unopened or will be opened after all submissions received before the closing time for submissions have been processed and entered on database

H.3.9

The procedure for evaluation of responsive submissions is:

State the criteria which are to be used to evaluate submissions including preferences, if any

..............................................................................................................

The additional conditions of submission are: 1

.........................................................................................................

2

.........................................................................................................

3

.........................................................................................................

Such conditions should only be used on very rare occasions. It is easier to use schedules for the purpose of soliciting information to be returned with the submission

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SANS 294:2004 Edition 1

Annex H (normative)

Standard conditions for the calling for expressions of interest H.1 General H.1.1 Actions The employer and each respondent submitting an expression of interest shall comply with the conditions for calling for expressions of interest. In their dealings with each other, they shall discharge their duties and obligations, as set out in H.2 and H.3, timeously and with integrity, and behave equitably, honestly and transparently.

H.1.2 Supporting documents The documents issued by the employer for the purpose of obtaining expressions of interest are listed in the submission data.

H.1.3 Interpretation The submission data and additional requirements contained in the submission schedules that are included in the returnable documents are deemed to be part of the conditions for the calling for expressions of interest.

H.1.4 Communication and employer's agent Each communication between the employer and a respondent shall be to or from the employer's agent only, and in a form that can be read, copied and recorded. Writing shall be in the English language. The employer shall not take any responsibility for non-receipt of communications from or by a respondent. The name and contact details of the employer’s agent are stated in the submission data.

H.2 Respondent's obligations H.2.1 Eligibility Submit an expression of interest only if the respondent satisfies the criteria stated in the submission data and if the respondent, or any of his principals, is not under any restriction to do business with the employer.

H.2.2 Cost of submissions Accept that the employer will not compensate the respondent for any costs incurred in the preparation and delivery of a submission.

H.2.3 Check documents Check the submission documents on receipt, including pages within them, and notify the employer of any discrepancy or omission.

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SANS 294:2004 Edition 1 H.2.4 Acknowledge addenda Acknowledge receipt of addenda to the submission documents, which the employer may issue, and if necessary apply for an extension to the closing time stated in the submission data, in order to take the addenda into account.

H.2.5 Clarification meetings Attend the clarification meetings at which respondents may familiarize themselves with the proposed work, services or supply (and location, etc.) and raise questions. Details of the meeting(s) are stated in the submission data.

H.2.6 Seek clarification Request clarification of the submission documents, if necessary, by notifying the employer at least five working days before the closing time stated in the submission data.

H.2.7 Making a submission H.2.7.1 Return all returnable documents to the employer after completing them in their entirety, either electronically (if they were issued in electronic format) or by writing in black ink.

H.2.7.2 Seal the original and each copy of the submission as separate packages marking the packages as "ORIGINAL" and "COPY". Each package shall state on the outside the employer's address and identification details stated in the submission data, as well as the respondent's name and contact address.

H.2.7.3 Accept that the employer will not assume any responsibility for the misplacement or premature opening of the submission if the outer package is not sealed and marked as stated.

H.2.8 Information and data to be completed in all respects Accept that submissions which do not provide all the data or information requested completely and in the form required may be regarded by the employer as being non-responsive.

H.2.9 Closing time H.2.9.1

Ensure that the employer receives the submissions at the address specified in the submission data not later than the closing time stated in the submission data. Proof of posting shall not be accepted as proof of delivery. The employer shall not accept submissions submitted by telegraph, telex, facsimile or e-mail, unless stated otherwise in the submission data.

H.2.9.2 Accept that, if the employer extends the closing time stated in the submission data for any reason, the requirements of the conditions for expressions of interest apply equally to the extended deadline.

H.2.10 Clarification of submission Provide clarification of a submission in response to a request to do so from the employer during the evaluation of submissions.

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SANS 294:2004 Edition 1 H.2.11 Provide other material Provide, on request by the employer, any other material that has a bearing on the submission or the respondent’s commercial position. Should the respondent not provide the material, or a satisfactory reason as to why it cannot be provided, by the time for submission stated in the employer’s request, the employer may regard the submission as being non-responsive.

H.3 Employer’s undertakings H.3.1 Respond to clarification Respond to a request for clarification received up to five working days before the submission closing time stated in the submission data and notify all respondents who attended the clarification meetings, if any, of those responses.

H.3.2 Issue addenda If necessary, issue addenda that may amend or amplify the submission documents to each respondent during the period from the date of the calling for expressions of interest until 7 d before the closing time for submissions stated in the submission data. If, as a result of the issuing of addenda, a respondent applies for an extension to the closing time stated in the submission data, the employer may grant such extension and shall then notify all respondents.

H.3.3 Late submissions Deal with late submissions as stated in the submission data.

H.3.4 Opening of submissions Record the name of each respondent whose submission is opened and acknowledge receipt of each submission.

H.3.5 Non-disclosure Do not disclose to respondents, or to any other person not officially concerned with such processes, information relating to the evaluation and comparison of submissions until after the evaluation process is complete.

H.3.6 Grounds for rejection and disqualification Determine whether there has been any effort by a respondent to influence the processing of submissions and instantly disqualify a respondent if it is established that he engaged in corrupt or fraudulent practices.

H.3.7 Test for responsiveness Determine, on opening and before detailed evaluation, whether each submission received a) complies with the requirements of the conditions for the calling for expressions of interest, b) has been properly and fully completed and signed, and c) is responsive to the other requirements of the call for expressions of interest.

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SANS 294:2004 Edition 1 H.3.8 Non-responsive submissions Reject all non-responsive submissions.

H.3.9 Evaluation of responsive submissions H.3.9.1 Appoint an evaluation panel of not less than three persons. Evaluate submissions using the evaluation criteria established in the submission data.

H.3.9.2 Notify the respondents of the outcome of the evaluation process within two weeks of the evaluation report being accepted by the employer.

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SANS 294:2004 Edition 1

Annex I (normative)

Form of offer and acceptance I.1 Offer The employer, identified in the acceptance signature block, has solicited offers to enter into a contract for the procurement of: ...................................................................................................... The tenderer, identified in the offer signature block, has examined the documents listed in the tender data and addenda thereto as listed in the tender schedules, and by submitting this offer has accepted the conditions of tender. By the representative of the tenderer, deemed to be duly authorized, signing this part of this form of offer and acceptance, the tenderer offers to perform all of the obligations and liabilities of the contractor under the contract including compliance with all its terms and conditions according to their true intent and meaning for an amount to be determined in accordance with the conditions of contract identified in the contract data. The offered total of the prices inclusive of value-added tax is ..................................................................................... Rand (in words); R . . . . . . . . . . . (in figures) This offer may be accepted by the employer by signing the acceptance part of this form of offer and acceptance and returning one copy of this document to the tenderer before the end of the period of validity stated in the tender data, whereupon the tenderer becomes the party named as the contractor in terms of the conditions of contract identified in the contract data. Signature(s)

......................................................................

..........................................................

Name(s)

......................................................................

..........................................................

Capacity

......................................................................

..........................................................

for the tenderer ................................................................................................................................. (Name and address of organization) Name and signature of witness

......................................................................

Date ...........................................

I.2 Acceptance By signing this part of this form of offer and acceptance, the employer accepts the tenderer’s offer. In consideration thereof, the employer shall pay the contractor the amount due in accordance with the conditions of contract identified in the contract data. Acceptance of the tenderer’s offer shall form an agreement between the employer and the tenderer upon the terms and conditions contained in this agreement and in the contract that is the subject of this agreement. The terms of the contract are contained in Part 1: Agreements and contract data (which include this agreement)

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SANS 294:2004 Edition 1 Part 2: Pricing data Part 3: Scope of work Part 4: Site information and drawings and documents or parts thereof, which may be incorporated by reference into parts 1 to 4 above. Deviations from and amendments to the documents listed in the tender data and any addenda thereto, as listed in the tender schedules, as well as any changes to the terms of the offer agreed by the tenderer and the employer during this process of offer and acceptance, are contained in the schedule of deviations attached to and forming part of this agreement. No amendments to or deviations from said documents are valid unless contained in this schedule, which shall be signed by the authorized representative(s) of both parties. The tenderer shall, within two weeks of receiving a completed copy of this agreement (including the schedule of deviations, if any), contact the employer’s agent (whose details are given in the contract data) to arrange the delivery of any bonds, guarantees, proof of insurance and any other documentation to be provided in terms of the conditions of contract identified in the contract data on, or just after, the date on which this agreement comes into effect. Failure to fulfil any of the obligations in accordance with those terms shall constitute a repudiation of this agreement. Notwithstanding anything contained herein, this agreement comes into effect on the date when the tenderer receives one fully completed original copy of this document, including the schedule of deviations (if any). Unless the tenderer (now contractor), within 5 d of the date of such receipt, notifies the employer in writing of any reason why he cannot accept the contents of this agreement, this agreement shall constitute a binding contract between the parties. Signature(s)

......................................................................

..........................................................

Name(s)

......................................................................

..........................................................

Capacity

......................................................................

..........................................................

for the employer ................................................................................................................................. (Name and address of organization) Name and signature of witness

......................................................................

Date ...........................................

I.3 Schedule of deviations The extent of deviations from the tender documents issued by the employer before the tender closing date is limited to those permitted in terms of the conditions of tender. A tenderer’s covering letter shall not be included in the final contract document. Should any matter in such letter, which constitutes a deviation as aforesaid, be the subject of agreements reached during the process of offer and acceptance, the outcome of such agreement shall be recorded here. Any other matter arising from the process of offer and acceptance either as a confirmation, clarification or change to the tender documents, and which it is agreed by the parties becomes an obligation of the contract, shall also be recorded here.

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SANS 294:2004 Edition 1 Any change or addition to the tender documents arising from the above agreements and recorded here, shall also be incorporated into the final draft of the contract. 1. Subject __________________________________________________________________ Details _____________________________________________________________________ 2. Subject __________________________________________________________________ Details _____________________________________________________________________ 3. Subject __________________________________________________________________ Details _____________________________________________________________________ 4. Subject __________________________________________________________________ Details _____________________________________________________________________ 5. Subject __________________________________________________________________ Details _____________________________________________________________________ 6. Subject __________________________________________________________________ Details _____________________________________________________________________ By the duly authorized representatives signing this schedule of deviations, the employer and the tenderer agree to and accept the foregoing schedule of deviations as the only deviations from and amendments to the documents listed in the tender data and addenda thereto as listed in the tender schedules, as well as any confirmation, clarification or changes to the terms of the offer agreed by the tenderer and the employer during this process of offer and acceptance. It is expressly agreed that no other matter whether in writing, oral communication or implied during the period between the issue of the tender documents and the receipt by the tenderer of a completed signed copy of this agreement shall have any meaning or effect in the contract between the parties arising from this agreement. For the tenderer: Signature(s)

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Name(s)

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Capacity

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................................................................................................................ (Name and address of organization) Name and signature of witness .............................................................

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Date ....................................

SANS 294:2004 Edition 1 For the employer: Signature(s)

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Name(s)

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Capacity

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................................................................................................................ (Name and address of organization) Name and signature of witness .............................................................

Date ....................................

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Annex J (normative)

Principles for adjudication J.1

Adjudication shall be applied to all categories of construction contracts (viz. engineering and construction works, services and supplies), at both prime and subcontract level, and shall be a mandatory requirement for the settlement of disputes before the completion of a contract.

J.2 There shall be no restriction on the issues arising from, or in connection with, the contract capable of being referred to adjudication. J.3

Adjudicators shall settle the dispute as independent adjudicators and not as arbitrators. Their decision shall be enforceable as a matter of contractual obligation between the parties and not as an arbitral award.

J.4

Adjudicators shall answer the questions put to them, provide written reasons for their decision, base their decisions on the subject of the dispute and only the dispute at hand and should avoid the conducting of hearings to resolve disputes.

J.5

Adjudication shall be conducted with no bias or apparent bias i.e. in a manner which favours or seems to favour one party or in a manner which is seen as supporting one party to the detriment of another. The adjudicator shall be impartial, act independently and not have, or appear to have, a personal relationship with any of the parties or an interest in the outcome of the adjudication.

J.6

Each party shall be given a reasonable opportunity to state his case without a hearing, i.e. he shall have a reasonable opportunity to present his case, know what the case against him is and be in possession of all the evidence and information adduced against it or obtained by the adjudicator.

J.7 The adjudicator shall, as a general rule, communicate in writing simultaneously with both parties, not offer advice, not accept telephone calls from the parties, not argue the case for one of the parties, ensure that any information which is relied upon is known to both parties and that each party has had an opportunity to respond to the information. J.8

The party requesting adjudication shall submit the dispute for resolution within the time period specified in the contract of becoming aware of it, failing which that party forfeits the right to dispute the matter.

J.9

The decision of the adjudicator shall be implemented immediately, whether or not the dispute is to be referred for final resolution to arbitration or litigation.

J.10 The adjudicator shall have the right, after notifying the parties, to retain legal and technical experts to assist in areas in which the adjudicator does not possess the necessary expertise. J.11 The adjudicator may be named in the contract or appointed by agreement between the parties by means of a procedure agreed to at the time of signing of the contract. J.12 The adjudicator shall comply with the rules of adjudication provided for in the contract, and in the agreement covering the adjudicator’s appointment, but in all other respects may determine the procedures and conduct of the adjudication, save for the conducting of hearings where this is unavoidable. 84

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J.13

Submissions by the parties to the adjudicator shall be in writing.

NOTE Whilst it is expected that the adjudicator will ask for more information (in writing) for clarification and understanding and ask questions about what the parties have submitted, any form of hearing should be discouraged. Hearings can seriously disadvantage those not proficient at adducing argument in front of experienced dispute resolution specialists and there is always a tendency for those more experienced to use gamesmanship to influence the adjudicator and introduce additional information that deflects from the real issues under dispute.

J.14 The rules of adjudication shall be very brief so as to avoid disputes and delaying tactics about the rules, but should include strict time periods for the actions within the adjudication process. J.15

As a general rule

a) a single adjudicator shall be appointed to decide on disputes, b) adjudicators shall not be required to familiarize themselves with the work as the contract proceeds (i.e. continuous monitoring is not necessary), c) adjudicators shall be remunerated on a basis of hourly fees and be reimbursed for all disbursements, d) adjudicators shall have the right to receive security or up-front deposits against their fees, and e) decisions shall be made within 42 d of a dispute being referred to an adjudicator.

J.16

Final resolution of the dispute shall only be referred to arbitration or litigation after a "cooling down" period of at least 28 d has lapsed.

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Bibliography PAUTZ M., WATERMEYER R., and JACQUET A. Public construction procurement: in a global economy. In Joint International Symposium of CIB Working Commissions. Singapore. 2003. Knowledge Construction [online] [sited 7 May 2004]. United Nations Commission for International Trade Laws. Model law on procurement of goods, construction and services. WATERMEYER, RB. Facilitating sustainable development through public and donor procurement regimes: tools and techniques. Public Procurement Law Review. 2004, issue 1, vol. 13, p. 30-55. World Bank. Guidelines: Procurement under IBRD Loans and IDA credits. World Bank, 1995 as revised, January 1999. World Bank. Guidelines: Selection and Employment of Consultants by World Bank Borrowers. The World Bank, 1997 as revised, May 2003. World Trade Organization. Government procurement: The plurilateral agreement (Agreement on government procurement, GPA)

© Standards South Africa

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