PROVISION OF EXTERNAL AUDIT SERVICE FOR JOBS FUND PROJECTS REFERENCE NO: RFP /18

Transcription

1 PROVISION OF EXTERNAL AUDIT SERVICE FOR JOBS FUND PROJECTS REFERENCE NO: RFP /18 Issued by: ECRDA Unit D12 Beacon Bay Crossing Corner N2 & Bonza Bay Road Beacon Bay EAST LONDON Name of Tenderer: Closing Date: 21 JUNE 2017 Closing Time: 11h00 1

2 TABLE OF CONTENTS ITEM DESCRIPTION PAGE NO Section A 1. Bid Advertisement 3-4 SECTION B 2. Terms of Reference 5-12 SECTION C 3. Evaluation criteria 13 SECTION D 4. Checklist 14 SECTION E Annexure I Invitation to Bid-SBD Annexure II Detailed quotation 17 Annexure III CVs & qualifications 18 Annexure IV Demonstrable relevant experience of the company 19 Annexure V Proof of registration with SAICA 20 Annexure VI Work Plan 21 Annexure VII Authority to sign 22 Annexure VIII Tax Clearance Certificate Requirements SBD Annexure IX Pricing Schedule Annexure X Declaration of Interests SBD Annexure XI Preference Points Claim Form SBD Annexure XII Declaration of Bidders Past SCM Practices-SBD Annexure XIII Certificate of Independent Bid Determination-SBD SECTION F General Conditions of Contract

3 SECTION A 1. REQUEST FOR PROPOSALS: PROVISION OF EXTERNAL AUDIT SERVICES FOR THE JOBS FUND PROJECTS. REFERENCE NUMBER: RFP / Introduction The Eastern Cape Rural Development Agency (ECRDA) hereby invites experienced and reputable service providers to submit proposals for the provision of external audit services for the Jobs Fund Projects. 1.2 Evaluation criteria All proposals received will be subjected to evaluation for compliance with important conditions as stipulated in the bid document. Proposals will also be evaluated on functionality where bidders will be expected to score the minimum qualifying points in order to be eligible for further evaluation on price and B-BBEE status. The evaluation on price and B-BBBEE status will be based on 80/20 preference point system as per Preferential Procurement Policy Framework Act and its amended Regulations. 1.3 Important Conditions All prospective bidders must be registered on the Central Supplier Database (CSD) before the closing date of the bid. All prices shall be quoted in South African currency inclusive of VAT. Bidders must submit a valid Tax Clearance Certificate from SARS. Certified copies of company registration documents and ID copies of all company directors must be submitted with the bid proposal. All quotations will hold good for 90 days after the closing date. Bidders must submit their original and valid B-BBEE status level verification certificate or a certified copy thereof substantiating their B-BBEE rating issued by a Verification Agency accredited by SANAS. A sworn affidavit in a prescribed form will be accepted from bidders qualifying as EME s or QSE s. Failure by the bidder to submit a B-BBEE certificate or sworn affidavit as mentioned above will result in the bidder not being allocated any preference points. All the Standard Bidding Documents (SBD) must be completed in full and signed where relevant. All additional documents and/or information required for compliance and functionality requirements must be submitted. 1.4 Submission of Bid Documents Proposals must be placed in a sealed envelope clearly endorsed with Reference Number including description and deposited in the tender box located in the reception area of the ECRDA offices at: Unit 12D, Beacon Bay Crossing, Corner N2 & Bonza Bay Road, Beacon Bay, East London,

4 1.4 Bid Enquiries Administrative Enquiries should be directed to Mrs M Esben -Telephone: or esbenm@ecrda.co.za Technical Enquiries should be directed to Ms V Zazi - Telephone: or zaziv@ecrda.co.za 1.5 Closing Date and Time: 21 June 11h00 NB: Telephonic, telegraphic, telex, facsimile and late bids will not be accepted. ECRDA reserves the right not to appoint. 4

5 SECTION B 2. TERMS OF REFERENCE EXTRACTED FROM OPERATING GUIDELINE FOR JOBS FUND PROJECTS Project Audit Audit Objective The objective of the audit of Jobs Fund projects is to obtain an independent, objective, professional opinion of: a. The financial position of the project, including funds received, expenditure incurred and funds transferred out to third parties (for financial support or beneficiation in terms of the project model). This involves assessing whether the project accounts are true and fair. This means that an examination is made of ALL (primary and secondary) project bank accounts and other types of financial reports that have been drawn up based on project related accounts and their underlying supporting documents. Not only should the accounts fairly represent the use of funds, as part of this, the financial audit of a grant must focus on the actual use of funds against its intended use towards contracted project outcomes. Expenditure should be assessed against the intended use to identify financial irregularities. In addition, the project s finances reported on the Grant Management System must correspond with these accounts. What is a performance audit? A performance audit aims to verify the outcomes of a programme/project; examine whether or how well the programme/project is achieving its goals and outline the relationship between the resources used and the results. What is Evaluation? Results based evaluation is an in-depth assessment of a planned, on-going or completed programme to determine its Relevance, Efficiency, Effectiveness, Outcomes (intermediate and long-term) and Sustainability, against pre-determined objectives and anticipated outcomes. b. The performance of the project and the results generated by the project. The audit work shall assess the accuracy of reported achievements against the indicators contracted in the Project ABC PIMP, testing the completeness and reliability of the project s portfolio of evidence, with a view of the data collection system, process and methodology. It should be noted that this is NOT a results based evaluation of the project, but simply a performance audit of the reported results in relation to the project expenditures. c. The compliance of the JF Partner with the tenets of the grant agreement and its management of the project in accordance with the agreed (and where applicable, amended) Project Implementation Monitoring Plan and Budget, identifying internal control and other deficiencies that need to be addressed. Assessing meeting matched funding commitments; maintaining financial management controls as set out in the Jobs Fund frameworks and upholding 5

6 project related agreements (such as off-take agreements, partnership agreements, etc.) For the accounting period starting from the commencement of the project or 1 April, as may be the case, and ending on 31 March of the specified year The audits should be carried out in accordance with the International auditing standards and aligned to the Jobs Fund Audit Requirements (as specified in this chapter). Sufficient audit evidence should be gathered to substantiate in all material respects the accuracy of financial statements The audit work should include the review of: Background documentation on the project the original project application form, the project appraisal, Investment Committee approval and due diligence The project s contract documentation including the Grant Agreement, Funding agreements, partnership agreements with Implementing Agents/ key service providers The project s planning documentation project results chain and implementation plan (PIMP) and project activity based budget The project s quarterly progress reports, annual audit reports and completion reports (if applicable) and all relevant supporting documentation Project-related accounts, invoices and supporting documents (asset register, loan book, etc.) Project s portfolio of evidence Key correspondence between the JF and JFP including correspondence relating to non-compliance, breach and remedial plans Jobs Fund operating guidelines, indicator definitions, protocols, proxy definitions and usage Documents to prepare Auditors Access to Information: The auditor appointed by the JF Partner must be given access to all legal documents, correspondence, and any other information associated with the project and deemed necessary by the auditor. It is highly recommended that the auditor becomes familiar with the Job Fund s Operating Guideline Documents The project s planning documentation application form, business plan, project results chain The project s contract documentation the grant agreement and its annexures (particularly the Project Implementation Plan and Budget), partnership agreements (funding, placement and off take agreements), beneficiary agreements (franchise, loan recipient, support agreements) The project s quarterly progress reports (as reported on the GMS), annual audit reports and other relevant internal reports 6

7 Project-related accounts (bank statements, general ledger and invoices) and supporting schedules or documents (asset register, loan book, etc.) Financial records of the implementing agent, where applicable The project s portfolio of evidence for reported indicators (data system extracts or reports, employment contracts, training registers, etc. as may be stipulated in the Project ABC PIMP as means of verification) On the basis of the information received during the planning phase of the engagement, as well as the auditors own risk assessment, the auditors shall determine the type and scope of audit procedures to mitigate the significant risks. Accordingly, auditors must define and carry out suitable audit tasks in order to obtain an overview of the aforementioned aspects before assessing the individual audit findings and reaching a final independent decision on the audit engagement. Samples are to be agreed with the Jobs Fund Scope of the Work The audit work will cover agreed-upon procedures engagement in which an auditor is engaged to carry out the procedures outlined in the TOR, of an audit nature to report on factual findings through the verification of validity, accuracy and completeness of financial information prepared by the JF Partner, as well as the verification of the reported achievements against the contracted indicators and the implementation of the project in accordance with the grant agreement. The areas to be covered in the audit are specified below Adherence to key contractual obligations for project success The audit work shall test the extent to which the JF Partner has adhered to, or implemented key project related agreements (such as the grant agreement (including the Project ABC PIMP), off take agreements, partnership agreements, loan agreements, beneficiary agreements) that are critical to the success of the project and its outcomes. This should include ascertaining whether: The project maintained the original project plan or is following an authorised remedial project plan, approved by the Jobs Fund, confirming that the key elements of the project plan present including but not limited to: o o o o staffing requirements; time lines; appropriate risk management; critical success criteria (i.e. if the project meets these, then it should meet its goals). All the relevant stakeholders have been identified and notified of the change of project pan i.e. is there clear communication of the new scope, objectives, costs benefits and impacts. There is a stakeholder management plan in place. That project accountabilities and responsibilities have been clearly defined. 7

8 Governance The audit work should confirm that there are appropriate internal controls, management mechanisms, and data systems in place for recording and reporting project financials, performance and results that can be evidenced. Any serious weaknesses, data misrepresentations or unplanned expenditure discovered during the normal course of audit work should be reported within 7 working days to the Jobs Fund Partner as well as the Head of the Jobs Fund Matched funding The audit work shall cover the fulfilment of the matched funding requirement: Verifying the deposit and use of matched funding in project bank account(s) exclusively for the purposes of the project in line with the project bank statement Physical verification, review of the audit trail and confirmation of actual inkind contributions to the project Verifying compliance with loan agreements where project funding is obtained through loans Financial Management The audit work shall cover the adequacy of the accounting, financial operations and reporting systems. This specifically includes: Testing the existence and management of separate project bank accounts in accordance with the Operating Guideline Testing that JF Partners have sound controls, processes, structures and governance mechanisms to safeguard funds awarded as per the Jobs Fund Grant Agreement Testing the proper recording of all financial transactions in the JF Partner s financial system, expenditure reports on the GMS correspond with the project s accounts, and any differences are properly explained and accounted for Testing that payments made to implementing partners where applicable are verified by the JF Partner for validity and accuracy and completeness prior to payment Validation of expenditure at implementing agent level. The audit work will cover the review of expenditure incurred at implementing agent level to verify that all expenditure is in line with the contracted ABC PIMP. Testing the validity, accuracy and completeness of the transfers out of the project bank account to the JF Partner s bank account as reimbursements for payments made from JF Partner s company bank account on behalf of the project. Testing the reasonability and accuracy of the allocation of shared costs between the Project, the JF Partner and where applicable the Implementing Partner. 8

9 Testing that expenditure is evidenced with supporting documentation such as invoices, payroll information, purchase documentation and any supporting contracts Documenting the basis, source and use of other project income. For interest income from on lending, confirm that this is appropriately reinvested into the project, unless there is JF approval for a different arrangement. For loan repayments, confirm that this is not used as matched funding, but reinvested into the project in terms of the original intent A declaration of unspent project funds (grant, matched funding, other project income, loan repayments) in the Project Bank Account(s) at the end of the financial year Asset Management The audit work should test the extent of compliance with the Operating Guidelines with respect to asset management. Specifically the audit work shall verify: That any asset purchases or transfers and infrastructure developed for the purposes of project delivery is recorded (reports on the GMS correspond with the project s asset register) That assets are appropriately managed and maintained (i.e. that there are procedures for receipt, storage, repairs and disposal) That transfer to third parties is properly managed and disclosed Review of the asset register Physical inspection of the location and condition of material assets Transfers The audit work shall also cover transfers and subsidies made by the JF Partner to third parties and test: That these are made in accordance with the project plan and budget That the intended beneficiary group is the actual beneficiary groups That the terms and conditions agreed with the JF are adhered to That all transfers are appropriately approved (there is a clear and transparent process and criteria with clear delegations) and managed (in terms of a signed agreement) That all related transactions (loan, extensions, bad debt write offs, conversion to subsidies, capital repayments and interest paid) is properly recorded, reported on or disclosed (on the GMS and any other relevant management reports) That these are appropriately tracked and accounted for by the JF Partner and project beneficiaries Review credit and write off policies and test for adherence. 9

10 Third party beneficiaries The verification of actual source supporting documentation i.e. invoices and bank statements. Physical inspection of transferred assets to the beneficiaries and or analytical reviews to test accuracy and validity of transfers Enquiry with the beneficiary of the benefits received from the project Check that mentorship/ business development agreements are being adhered to Reimbursements For JF partners that invoice in bulk to the project bank account or that transact outside of the project bank account for certain expenses. Audit work shall cover the verification of all financial information for payments from the project bank account to reimburse the expenditure outside of the project bank account. Audit work should also cover review of procedures to ensure adequate internal controls around these transactions. All supporting documentation of the transactions must be reviewed for accuracy and validity in line with the contracted ABC PIMP Reporting Auditors are expected to perform procedures to assess the validity, accuracy and completeness of the project's quarterly reporting information with specific focus on the key components of the SCOA budget: Own funding, outside source funding, loan financing, valuation of in-kind contributions, other project income, management costs, transfers, subsidies, compensation and goods and services as well as reported performance information against applicable performance indicators Verification of Deliverables The audit work shall cover: The process to deliver such outputs/outcomes and how this process is documented The controls in this process that allow for appropriate confirmation of delivery How these outputs/outcomes are measured and whether the means of verification allows for confidence in the accuracy of reported achievements Testing the completeness and reliability of the project s portfolio of evidence How project outputs/outcomes are consolidated and reported and whether the collected portfolio of evidence supports the reported results Whether the project resources are producing the planned results. For example, are the costs being incurred for training producing the planned number of trained beneficiaries? It is the auditor s role to identify where the 10

11 inputs are not producing the planned outputs/outcomes from a factual observation. The JF Partner would be required to respond to these findings, with appropriate explanations. The auditors are expected to take a sample of beneficiaries reported on the Jobs Fund Standard Schedule of Evidence list for each indicator and perform verification checks Projects in their close-out period (3 quarters before completion date) In addition to the scope of work outlined above, where a project is approaching completion, the audit work is to: Additional guidance: Review the status and actions of previous audit findings and recommendations Provide an opinion on the going concern nature of the project Quantify the amount of surplus cash including the amount of cash earmarked for use in sustaining the project, the jobs created, its benefits and/or its beneficiaries Confirm the transfer of assets in line with the Grant Agreement Confirm that all authorized contingent liabilities have been settled Determine the extent to which the JFP is in a position to meet outstanding obligations for the project Conduct agreed upon procedures on the extent to which the Project operations, systems and institutional arrangements are oriented for the sustainability of the project and its outcomes. Although the definitions for each of the six Jobs Fund indicators are standard and the auditors are expected to familiarise themselves with these definitions, certain projects have implemented proxy measures for calculating progress against their contracted indicators: They are used when direct measures of the outcome (e.g. an employment contract for a new permanent job) are unobservable and/or unavailable. Proxy measures are most often used, in the context of the Jobs Fund, when measuring the point at which an entrepreneur becomes gainfully selfemployed and can therefore be counted as a new permanent job Expected Audit Outputs Factual findings report The auditors are responsible for elaborating all the factual findings made during the project audit and were possible an opinion. The audit finding should also include results of review of the detailed ledger including matters relating to the form, content, 11

12 presentation and disclosure of financial statements in accordance applicable standards Management Report Letter As part of the engagement, the auditors are expected to provide a detailed management report documenting the internal control deficiencies identified, the level of risk posed by such deficiencies, their impact on the project and JFPs and provide a recommendation to address such deficiencies identified as well as the shortcomings of the portfolio of evidence and the methodology used to collect and verify such data Audit Recommendations The auditor is expected to assess the performance of the project and the financial position (and where necessary, the transactions) of the project and expressly state his/her position on them in the audit report. We expect the following paragraph to be included in the audit report: Based on our audit, nothing has come to our attention that causes us not to believe that: i. The JF Partner has complied with the requirements of the grant agreements and its addenda; ii. iii. iv. The Internal Control and Financial Management Systems in place are adequate and effectively organised and utilized; The financial accounts as recorded and reported are true and fair, and accurately represent the use of funds; The achievements as recorded and reported are accurate, and supported by documented evidence; v. The JF Partner has economically conducted business and the financial resources have been used effectively. The Jobs Fund Partner must consider the recommendations of their auditor in order to improve the management of the project Addressing Audit issues It should be noted that where the auditor s report contains audit findings as indicated above, the management letter must be accompanied with a response by the JF Partner indicating how these issues will be addressed/ managed going forward Implications of non-compliance with the Jobs Fund Audit Requirements It should be noted that non-compliance with the Jobs Fund audit obligation could lead to the withholding of the grant, or a full audit by the Jobs Fund on the project The bidders have to note that the Forestry Project is to cover 01/04/2016 to 31/03/2017. The Agro processing Project is to cover 01/04/2016 to 31/03/2017 and 01/04/2017 to 31/12/

13 SECTION C 3. EVALUATION CRITERIA 3.1 Evaluation of functionality No Criteria Weight 1. Relevant, demonstrated experience in Auditing (Team Members) (Provide comprehensive CVs) % completed articles = 10 points 83% completed articles = 9 points 67% completed articles = 8 points 50% completed articles = 7 points 33% completed articles = 6 points Below 33% qualified with completed articles = 0 2. Qualifications of Team Members (Provide Certificates of qualification, certified copies) % qualified as a CA/Honours = 20 points 83% qualified as a CA/Honours = 18 points 67% qualified as a CA/Honours = 16 points 50% qualified as a CA/Honours = 14 points 33% qualified as a CA/Honours = 12 points 17% qualified as a CA/Honours = 10 points Below 17% qualified as a CA/Honours = 0 3. Work Plan In respect of the work plan bidders must adhere to the following: 30 - Meet the stipulated deadline - Allow time for resolving queries - Issue draft management letter and resolve disputes - Issue the final audit report on 11 August 2017 & 28 Feb Experience of the Firm 10 - Above 6 years = 10 points - Above 2-6 years = 5 points years = 0 points 5. Total 70 A bidder who scores less than 40 out of 70 for functionality will not qualify for further evaluation. 3.2 Evaluation of price and B-BBEE points The bids will be evaluated further using the 80/20 preference point system as per Preferential Procurement Framework Act, 2000 and its amended Regulations whereby 80 points will be allocated for price and 20 points for B-BBEE status level. 13

14 SECTION D 4. CHECKLIST FOR IMPORTANT BID REQUIREMENTS PLEASE TICK YES OR NO IN EACH BOX BELOW No. Description of Document Check (Yes/ No) 1. Detailed Quotation YES NO 2. Demonstrable relevant experience of the company YES NO 3. Proof of registration with SAICA YES NO 4. Work Plan YES NO 5. CVs & qualifications YES NO 6. Original & Valid Tax Clearance Certificate from SARS YES NO 7. Certified ID Copies of Directors YES NO 8. Certified Company Registration Certificate YES NO 9. Authority to Sign YES NO 10. Completed & Signed SBD 4 YES NO 11. Preference points claim form YES NO 12. Completed & Signed SBD 8 YES NO 13. Completed & Signed SBD 9 YES NO 14. Signed General Conditions of Contract YES NO Original and valid B-BBEE Certificate / Certified Copy or sworn affidavit 14

15 SECTION E STANDARD BIDDING DOCUMENTS ANNEXURE I Invitation to Bid SBD 1 YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF ECRDA REF. NUMBER: RFP /18 CLOSING DATE: 21 JUNE 2017 CLOSING TIME: 11:00 DESCRIPTION: PROVISION OF EXTERNAL AUDIT SERVICE FOR JOBS FUND PROJECTS. The successful bidder will be required to fill in and sign a written Contract Form (SBD 7). DEPOSITED IN THE BID BOX SITUATED AT: Unit 12 D, Beacon Bay Crossing, Corner N2 & Bonza Bay Road, Beacon Bay, East London. Bidders should ensure that quotations are delivered timeously to the correct address. If the quotation is late, it will not be accepted for consideration. The bid box is generally open 9 hours a day, 5 days a week. ALL QUOTATIONS MUST BE SUBMITTED ON THE OFFICIAL FORMS (NOT TO BE RE- TYPED) THIS RFQ IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT THE FOLLOWING PARTICULARS MUST BE FURNISHED O (FAILURE TO DO SO MAY RESULT IN YOUR BID BEING DISQUALIFIED) NAME OF BIDDER... POSTAL ADDRESS. STREETADDRESS TELEPHONE NUMBER: CODE NUMBER.. CELLPHONE NUMBER... FACSIMILE NUMBER: CODE.NUMBER ADDRESS: 15

16 VAT REGISTRATION NUMBER HAS AN ORIGINAL AND VALID TAX CLEARANCE CERTIFICATE BEEN SUBMITTED? (SBD 2) YES or NO HAS A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE BEEN SUBMITTED? (SBD 6.1) YES or NO IF YES, WHO WAS THE CERTIFICATE ISSUED BY? AN ACCOUNTING OFICER AS CONTEMPLATED IN THE CLOSE CORPORATION ACT (CCA)..... A VERIFICATION AGENCY ACCREDITED BY THE SOUTH AFRICAN ACCREDITATION SYSTEM (SANAS); OR. A REGISTERED AUDITOR..... [TICK APPLICABLE BOX] (A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE) ARE YOU THE ACCREDITED REPRESENTATIVE IN SOUTH AFRICA FOR THE GOODS / SERVICES / WORKS OFFERED? YES or NO [IF YES ENCLOSE PROOF] SIGNATURE OF BIDDER DATE CAPACITY UNDER WHICH THIS BID IS SIGNED TOTAL BID PRICE TOTAL NUMBER OF ITEMS OFFERED... ANY ENQUIRIES REGARDING THE BIDDING PROCEDURE MAY BE DIRECTED TO: Contact Person: Ms. M. Esben Tel: or address: esbenm@ecrda.co.za ANY ENQUIRIES REGARDING TECHNICAL INFORMATION MAY BE DIRECTED TO: Contact Person: Ms S Maasdorp Tel: or address: maasdorps@ecrda.co.za 16

17 ANNEXURE II DETAILED QUOTATION BIDDERS MUST ATTACH A DETAILED QUOTATION ON THIS PAGE. This information shall be deemed to be material to the award of the Contract. SIGNED ON BEHALF OF THE BIDDER: 17

18 ANNEXURE III CVs & QUALIFICATIONS BIDDERS MUST ATTACH CV s AND QUALIFICATIONS OF PERSONNEL ON THIS PAGE This information shall be deemed to be material to the award of the Contract. SIGNED ON BEHALF OF THE BIDDER: 18

19 ANNEXURE IV DEMONSTRABLE RELEVANT EXPERIENCE OF THE COMPANY The bidder must insert in the spaces provided below a complete list of all relevant contracts awarded to the company regarding rendering external audit services. This information shall be deemed to be material to the award of the Contract. Company (Name & Tel No) Project Manager (Name & Tel No) Nature of Contract Year Started & Completed SIGNED ON BEHALF OF THE BIDDER: 19

20 ANNEXURE V REGISTRATION WITH SAICA BIDDERS MUST ATTACH PROOF OF REGISTRATION WITH SAICA ON THIS PAGE This information shall be deemed to be material to the award of the Contract. SIGNED ON BEHALF OF THE BIDDER: 20

21 ANNEXURE VI WORKPLAN BIDDERS MUST ATTACH PROOF WORK PLAN ON THIS PAGE This information shall be deemed to be material to the award of the Contract. SIGNED ON BEHALF OF THE BIDDER: 21

22 ANNEXURE VII AUTHORITY TO SIGN Signatory for companies shall confirm their authority thereto by attaching a duly signed and dated copy of the relevant resolution of the board of directors to this form. An example is given below: By resolution of the board of directors passed at a meeting held on..... Mr./Ms..., whose signature appears below, has been duly authorized to sign all documents in connection with the bid for Contract NO and any Contract that may arise there from on behalf of (name of Bidder in block capitals) SIGNED ON BEHALF OF THE COMPANY:... IN HIS/HER CAPACITY AS: DATE:... SIGNATURE OF SIGNATORY:.... WITNESSES:

23 ANNEXURE VIII TAX CLEARANCE CERTIFICATE REQUIREMENTS SBD 2 It is a condition of bid that the taxes of the successful bidder must be in order, or that satisfactory arrangements have been made with South African Revenue Service (SARS) to meet the bidder s tax obligations. 1 In order to meet this requirement bidders are required to complete in full the attached form TCC 001 Application for a Tax Clearance Certificate and submit it to any SARS branch office nationally. The Tax Clearance Certificate Requirements are also applicable to foreign bidders / individuals who wish to submit Bids. 2 SARS will then furnish the bidder with a Tax Clearance Certificate that will be valid for a period of 1 (one) year from the date of approval. 3 The original Tax Clearance Certificate must be submitted together with the bid. Failure to submit the original and valid Tax Clearance Certificate will result in the invalidation of the bid. Certified copies of the Tax Clearance Certificate will not be acceptable. 4 In bids where Consortia / Joint Ventures / Sub-contractors are involved, each party must submit a separate Tax Clearance Certificate. 5 Copies of the TCC 001 Application for a Tax Clearance Certificate form are available from any SARS branch office nationally or on the website 6 Applications for the Tax Clearance Certificates may also be made via efiling. In order to use this provision, taxpayers will need to register with SARS as efilers through the website Jeyrel:\Mdk416-SBD2 tax clearance 23

24 PLEASE ATTACH TAX CLEARANCE CERTIFICATE ON THIS PAGE 24

25 ANNEXURE IX Pricing Schedule Firm Prices SBD 3.1-Professional Services NAME OF BIDDER: BID NO.: CLOSING TIME 11:00 CLOSING DATE. OFFER TO BE VALID FOR DAYS FROM THE CLOSING DATE OF BID. ITEM NO DESCRIPTION BID PRICE IN RSA CURRENCY. **(ALL APPLICABLE TAXES INCLUDED) 1. The accompanying information must be used for the formulation of proposals. 2. Bidders are required to indicate a ceiling price based on the total estimated time for completion of all phases and including all expenses inclusive of all applicable taxes for the project. R.. 3. PERSONS WHO WILL BE INVOLVED IN THE PROJECT AND RATES APPLICABLE (CERTIFIED INVOICES MUST BE RENDERED IN TERMS HEREOF) 4. PERSON AND POSITION HOURLY RATE DAILY RATE R R R R R R R R PHASES ACCORDING TO WHICH THE PROJECT WILL BE COMPLETED, COST PER PHASE AND MAN-DAYS TO BE SPENT R days R days R days R days 5.1Travel expenses (specify, for example rate/km and total km, class of airtravel, etc). Only actual costs are recoverable. Proof of the expenses incurred must accompany certified invoices. DESCRIPTION OF EXPENSE TO BE INCURRED RATE QUANTITY AMOUNT 25

26 R R R R. TOTAL: R ** all applicable taxes includes value- added tax, pay as you earn, income tax, unemployment insurance fund contributions and skills development levies. 5.2 Other expenses, for example accommodation (specify, eg. Three star hotel, bed and breakfast, telephone cost, reproduction cost,etc.). On basis of these particulars, certified invoices will be checked or correctness. Proof of the expenses must accompany invoices. DESCRIPTION OF EXPENSE TO BE INCURRED RATE QUANTITY AMOUNT R R R R.. TOTAL: R 6.Period required for commencement with project after acceptance of bid 7.Estimated man-days for completion of project 8.Are the rates quoted firm for the full period of contract? *YES/NO 9.If not firm for the full period, provide details of the basis on which adjustments will be applied for, for example consumer price index.... *[DELETE IF NOT APPLICABLE 26

27 ANNEXURE X DECLARATION OF INTEREST SBD 4 1. Any legal person, including persons employed by the state¹, or persons having a kinship with persons employed by the state, including a blood relationship, may make an offer or offers in terms of this invitation to bid (includes an advertised competitive bid, a limited bid, a proposal or written price quotation). In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the state, or to persons connected with or related to them, it is required that the bidder or his/her authorised representative declare his/her position in relation to the evaluating/adjudicating authority where- - the bidder is employed by the state; and/or - the legal person on whose behalf the bidding document is signed, has a relationship with persons/a person who are/is involved in the evaluation and or adjudication of the bid(s), or where it is known that such a relationship exists between the person or persons for or on whose behalf the declarant acts and persons who are involved with the evaluation and or adjudication of the bid. 2. In order to give effect to the above, the following questionnaire must be completed and submitted with the bid. 2.1 Full Name of bidder or his or her representative: 2.2 Identity Number:. 2.3 Position occupied in the Company (director, trustee, shareholder², member): 2.4 Registration number of company, enterprise, close corporation, partnership agreement or trust: Tax Reference Number: VAT Registration Number: The names of all directors / trustees / shareholders / members, their individual identity numbers, tax reference numbers and, if applicable, employee / PERSAL numbers must be indicated in paragraph 3 below. ¹ State means (a) (b) (c) (d) (e) any national or provincial department, national or provincial public entity or constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act No. 1 of 1999); any municipality or municipal entity; provincial legislature; national Assembly or the national Council of provinces; or Parliament. ² Shareholder means a person who owns shares in the company and is actively involved in the management of the enterprise or business and exercises control over the enterprise. 27

28 2.7 Are you or any person connected with the bidder YES / NO presently employed by the state? If so, furnish the following particulars: Name of person / director / trustee / shareholder/ member: Name of state institution at which you or the person connected to the bidder is employed : Position occupied in the state institution:... Any other particulars: If you are presently employed by the state, did you obtain YES / NO the appropriate authority to undertake remunerative work outside employment in the public sector? If yes, did you attach proof of such authority to the bid YES / NO document? (Note: Failure to submit proof of such authority, where applicable, may result in the disqualification of the bid If no, furnish reasons for non-submission of such proof: Did you or your spouse, or any of the company s directors / YES / NO trustees / shareholders / members or their spouses conduct business with the state in the previous twelve months? If so, furnish particulars: Do you, or any person connected with the bidder, have YES / NO any relationship (family, friend, other) with a person 28

29 employed by the state and who may be involved with the evaluation and or adjudication of this bid? 2.9.1If so, furnish particulars Are you, or any person connected with the bidder, YES/NO aware of any relationship (family, friend, other) between any other bidder and any person employed by the state who may be involved with the evaluation and or adjudication of this bid? If so, furnish particulars Do you or any of the directors / trustees / shareholders / members YES/NO of the company have any interest in any other related companies whether or not they are bidding for this contract? If so, furnish particulars:

30 3 Full details of directors / trustees / members / shareholders. Full Name Identity Personal Number Income Tax Reference Number State Employee Number / Persal Number 4 DECLARATION I, THE UNDERSIGNED (NAME) CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2 and 3 ABOVE IS CORRECT. I ACCEPT THAT THE STATE MAY REJECT THE BID OR ACT AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE... Signature. Position Date Name of bidder 30

31 ANNEXURE XI PREFERENCE POINTS CLAIM FORM SBD 6.1 PREFERENCE POINTS CLAIM FORM IN TERMS OF THE PREFERENTIAL PROCUREMENT REGULATIONS 2017 This preference form must form part of all bids invited. It contains general information and serves as a claim form for preference points for Broad-Based Black Economic Empowerment (B-BBEE) Status Level of Contribution NB: BEFORE COMPLETING THIS FORM, BIDDERS MUST STUDY THE GENERAL CONDITIONS, DEFINITIONS AND DIRECTIVES APPLICABLE IN RESPECT OF B-BBEE, AS PRESCRIBED IN THE PREFERENTIAL PROCUREMENT REGULATIONS, GENERAL CONDITIONS 1.1 The following preference point systems are applicable to all bids: - the 80/20 system for requirements with a Rand value of up to R (all applicable taxes included); and - the 90/10 system for requirements with a Rand value above R (all applicable taxes included). 1.2 The value of this bid is estimated to not exceed R (all applicable taxes included) and therefore the 80/20 preference point system shall be applicable. 1.3 Preference points for this bid shall be awarded for: (a) (b) Price; and B-BBEE Status Level of Contribution. 1.4 The maximum points for this bid are allocated as follows: POINTS PRICE 80 B-BBEE STATUS LEVEL OF CONTRIBUTION 20 Total points for Price and B-BBEE must not exceed Failure on the part of a bidder to submit proof of B-BBEE Status level of contributor together with the bid, will be interpreted to mean that preference points for B-BBEE status level of contribution are not claimed. 1.6 The purchaser reserves the right to require of a bidder, either before a bid is adjudicated or at any time subsequently, to substantiate any claim in regard to preferences, in any manner required by the purchaser. 2. DEFINITIONS (a) (b) B-BBEE means broad-based black economic empowerment as defined in section 1 of the Broad-Based Black Economic Empowerment Act; B-BBEE status level of contributor means the B-BBEE of an entity based in terms of a code 31

32 (c) (d) (e) (f) (g) (h) (i) (j) on black economic empowerment, issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act; bid means a written offer in a prescribed or stipulated form in response to an invitation by an organ of state for the provision of services, works or goods, through price quotations, advertised competitive bidding processes or proposals; Broad-Based Black Economic Empowerment Act means the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); EME means an Exempted Micro Enterprise as defines by Codes of Good Practice under section 9 (1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); functionality means the ability of a tenderer to provide goods or services in accordance with specifications as set out in the tender forms; prices includes all applicable taxes less all unconditional discounts; proof of B-BBEE status level of contributor means: 1) B-BBEE Status level certificate issued by an authorized body or person; 2) A sworn affidavit as prescribed by the B-BBEE Codes of Good Practice; 3) Any other requirement prescribed in terms of the B-BBEE Act; QSE means a qualifying small business enterprise in terms of good practice on black economic empowerment issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act; rand value means the total estimated value of a contract in Rand, calculated at the time of bid invitations, and includes all applicable taxes; 3. POINTS AWARDED FOR PRICE 3.1 THE 80/20 OR 90/10 PREFERENCE POINT SYSTEMS A maximum of 80 or 90 points is allocated for price on the following basis: 80/20 or 90/10 Pt P min Pt P min Ps 801 or Ps 901 P min P min Where Ps = Points scored for comparative price of bid under consideration Pt = Comparative price of bid under consideration Pmin = Comparative price of lowest acceptable bid 4. POINTS AWARDED FOR B-BBEE STATUS LEVEL OF CONTRIBUTION 32

33 4.1 In terms of Regulation 6 (2) and 7 (2) of the Preferential Procurement Regulations, preference points must be awarded to a bidder for attaining the B-BBEE status level of contribution in accordance with the table below: B-BBEE Status Level of Contributor Number of points (90/10 system) Number of points (80/20 system) Non-compliant contributor BID DECLARATION 5.1 Bidders who claim points in respect of B-BBEE Status Level of Contribution must complete the following: 6. B-BBEE STATUS LEVEL OF CONTRIBUTION CLAIMED IN TERMS OF PARAGRAPHS 1.4 AND B-BBEE Status Level of Contribution:. = (maximum of 10 or 20 points) (Points claimed in respect of paragraph 7.1 must be in accordance with the table reflected in paragraph 4.1 and must be substantiated by means of a B-BBEE status level of contributor. 7. SUB-CONTRACTING 7.1 Will any portion of the contract be sub-contracted? (Tick applicable box) YES NO If yes, indicate: i) What percentage of the contract will be subcontracted.... % ii) The name of the sub-contractor.. iii) The B-BBEE status level of the sub-contractor..... iv) Whether the sub-contractor is an EME or QSE. (Tick applicable box) YES NO 33

34 v) Specify, by ticking the appropriate box, if subcontracting with an enterprise in terms of Preferential Procurement Regulations, 2017: Designated Group: An EME or QSE which is at least 51% owned by EME QSE Black People Black People who are youth Black People who are women Black People with disabilities Black people living in rural or underdeveloped areas Cooperative owned by black people Black people who are military veterans Any EME Any QSE OR 8. DECLARATION WITH REGARD TO COMPANY/FIRM 8.1 Name of company/firm:. 8.2 VAT registration number:. 8.3 Company registration number: TYPE OF COMPANY/ FIRM Partnership/Joint Venture / Consortium One person business/sole propriety Close corporation Company (Pty) Limited [TICK APPLICABLE BOX] 8.5 DESCRIBE PRINCIPAL BUSINESS ACTIVITIES COMPANY CLASSIFICATION Manufacturer Supplier Professional service provider 34

35 Other service providers, e.g. transporter, etc. [TICK APPLICABLE BOX] 8.7 Total number of years the company/firm has been in business: 8.8 I/we, the undersigned, who is / are duly authorised to do so on behalf of the company/firm, certify that the points claimed, based on the B-BBE status level of contribution indicated in paragraph 1.4 and 6.1 of the foregoing certificate, qualifies the company/ firm for the preference(s) shown and I / we acknowledge that: i) The information furnished is true and correct; ii) The preference points claimed are in accordance with the General Conditions as indicated in paragraph 1 of this form; iii) In the event of a contract being awarded as a result of points claimed as shown in paragraph 1.4 and 6.1, the contractor may be required to furnish documentary proof to the satisfaction of the purchaser that the claims are correct; iv) If the B-BBEE status level of contribution has been claimed or obtained on a fraudulent basis or any of the conditions of contract have not been fulfilled, the purchaser may, in addition to any other remedy it may have (a) (b) (c) (d) (e) disqualify the person from the bidding process; recover costs, losses or damages it has incurred or suffered as a result of that person s conduct; cancel the contract and claim any damages which it has suffered as a result of having to make less favourable arrangements due to such cancellation; restrict the bidder or contractor, its shareholders and directors, or only the shareholders and directors who acted on a fraudulent basis, from obtaining business from any organ of state for a period not exceeding 10 years, after the audi alteram partem (hear the other side) rule has been applied; an forward the matter for criminal prosecution. WITNESSES. SIGNATURE(S) OF BIDDERS(S) DATE:.. ADDRESS.. 35

36 ANNEXURE XII DECLARATION OF BIDDER S PAST SUPPLY CHAIN MANAGEMENT PRACTICES SBD 8 1 This Standard Bidding Document must form part of all bids invited. 2 It serves as a declaration to be used by institutions in ensuring that when goods and services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system. 3 The bid of any bidder may be disregarded if that bidder, or any of its directors have- a. abused the institution s supply chain management system; b. committed fraud or any other improper conduct in relation to such system; or c. failed to perform on any previous contract. 4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid. Item Question Yes No 4.1 Is the bidder or any of its directors listed on the National Treasury s Database of Restricted Suppliers as companies or persons prohibited from doing business with the public sector? (Companies or persons who are listed on this Database were informed in writing of this restriction by the Accounting Officer/Authority of the institution that imposed the restriction after the audi alteram partem rule was applied). The Database of Restricted Suppliers now resides on the National Treasury s website ( and can be accessed by clicking on its link at the bottom of the home page. Yes No If so, furnish particulars: 36

37 4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)? The Register for Tender Defaulters can be accessed on the National Treasury s website ( by clicking on its link at the bottom of the home page. Yes No If so, furnish particulars: 4.3 Was the bidder or any of its directors convicted by a court of law (including a court outside of the Republic of South Africa) for fraud or corruption during the past five years? Yes No If so, furnish particulars: 4.4 Was any contract between the bidder and any organ of state terminated during the past five years on account of failure to perform on or comply with the contract? Yes No If so, furnish particulars: 37

38 CERTIFICATION I, THE UNDERSIGNED (FULL NAME) CERTIFY THAT THE INFORMATION FURNISHED ON THIS DECLARATION FORM IS TRUE AND CORRECT. I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.... Signature.. Date. Position Js365bW.. Name of Bidder 38

39 ANNEXURE XIII CERTIFICATE OF INDEPENDENT BID DETERMINATION SBD 9 1 This Standard Bidding Document (SBD) must form part of all bids¹ invited. 2 Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended, prohibits an agreement between, or concerted practice by, firms, or a decision by an association of firms, if it is between parties in a horizontal relationship and if it involves collusive bidding (or bid rigging).² Collusive bidding is a pe se prohibition meaning that it cannot be justified under any grounds. 3 Treasury Regulation 16A9 prescribes that accounting officers and accounting authorities must take all reasonable steps to prevent abuse of the supply chain management system and authorizes accounting officers and accounting authorities to: a. disregard the bid of any bidder if that bidder, or any of its directors have abused the institution s supply chain management system and or committed fraud or any other improper conduct in relation to such system. b. cancel a contract awarded to a supplier of goods and services if the supplier committed any corrupt or fraudulent act during the bidding process or the execution of that contract. 4 This SBD serves as a certificate of declaration that would be used by institutions to ensure that, when bids are considered, reasonable steps are taken to prevent any form of bidrigging. 5 In order to give effect to the above, the attached Certificate of Bid Determination (SBD 9) must be completed and submitted with the bid: ¹ Includes price quotations, advertised competitive bids, limited bids and proposals. ² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly conspire to raise prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or services through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete. 39