to download the PDF on the Supply Chain ... - Mangaung.co.za

16.2.20.4 If rejection is due <strong>to</strong> lack of competition, wider advertising should be considered. If <strong>the</strong>
rejection was due <strong>to</strong> most or all of <strong>the</strong> bids being non responsive, new bids may be
invited from <strong>the</strong> initially pre-qualified bidders, or with <strong>the</strong> agreement of <strong>the</strong> Municipal
Manager, from only those that submitted bids in <strong>the</strong> first instance. All bids should not be
rejected solely for <strong>the</strong> purpose of obtaining lower prices. If <strong>the</strong> lowest evaluated
responsive bid exceeds <strong>the</strong> Municipality’s pre-bid cost estimates by a substantial
margin, <strong>the</strong> Municipality must investigate <strong>the</strong> causes for <strong>the</strong> excessive cost and consider
requesting new bids as described above.
16.2.20.5 Alternatively <strong>to</strong> paragraph 16.2.1.5, <strong>the</strong> Municipality may negotiate with <strong>the</strong> identified
preferred bidder(s) <strong>to</strong> try <strong>to</strong> obtain a satisfac<strong>to</strong>ry contract through a reduction in <strong>the</strong>
scope and/or a reallocation of risk and responsibility that can be reflected in a reduction
of <strong>the</strong> contract price, provided that a substantial reduction in <strong>the</strong> scope or modification <strong>to</strong>
<strong>the</strong> contract documents may require re-bidding. The Municipal Manager’s prior approval
must be obtained before rejecting all bids, soliciting new bids, or entering in<strong>to</strong>
negotiations with <strong>the</strong> identified preferred bidder. This approval should be recorded for
auditing purposes.
16.2.20.6 The Municipality may, before bids are considered for acceptance examine and take in<strong>to</strong>
account <strong>the</strong> following, although not limited <strong>the</strong>re<strong>to</strong>:
(a) <strong>the</strong> financial standing of a bidder, including his ability <strong>to</strong> furnish <strong>the</strong> required
institutional guarantee, where applicable;
(b) <strong>the</strong> bidder’s good standing with <strong>the</strong> Municipality from past experience;
(c) <strong>the</strong> bidder’s ability <strong>to</strong> fulfill his obligations in terms of <strong>the</strong> bid documents.
16.2.20.7 The remaining acceptable bids shall be adjudicated according <strong>to</strong> <strong>the</strong> following as
applicable:
(a) bid price (corrected if applicable and brought <strong>to</strong> a comparative level where
necessary);
(b) <strong>the</strong> unit rates and prices;
(c) any qualifications <strong>to</strong> <strong>the</strong> bid;
(d) <strong>the</strong> bid ranking obtained in respect of preferences set out in Chapter 4;
(e) any o<strong>the</strong>r criteria specified in <strong>the</strong> bid documents.
16.2.20.8 Additional information or clarification of bids may be called for if required, by <strong>the</strong> Bid
Evaluation Committee in writing.
16.2.20.9 The Municipality reserves <strong>the</strong> right <strong>to</strong> consider alternative bids, provided that a bid free
of qualifications and strictly in accordance with <strong>the</strong> bid documents is also submitted.
Alternative bids shall be submitted on separate complete sets of bid documents and
shall be clearly marked “Alternative Bid” <strong>to</strong> distinguish it from <strong>the</strong> unqualified bid referred
<strong>to</strong> above. The Municipality shall not be bound <strong>to</strong> consider alternative bids. If, after bids
have been brought <strong>to</strong> a comparative level and are equal in all respects, <strong>the</strong> Delegated
Authority shall in <strong>the</strong> presence of a witness, draw lots <strong>to</strong> decide <strong>the</strong> award.
41