Abstract
When a municipality contracts for goods or services, it must make use of competitive bidding / a public call for tenders for contracts over R200 000 as well as for long term contracts. A competitive bidding process generally consists of different stages, for example, compiling bid specifications, advertising the bid, the receipt and evaluation of bids, and the award and implementation of the contract. The Municipal Supply Chain Management Regulations require a municipality’s Supply Chain Management Policy to provide for a committee system to oversee the different stages. Such committee system must, moreover, consist of at least a bid specification committee, a bid evaluation committee and a bid adjudication committee. Until recently, little attention has been given by the courts to the roles and composition of the different committees in the committee system. It is only after government, and in particular, municipalities have begun to implement the committee system in their procurement processes that it is evident that problems are arising. In recent months, the courts have increasingly had to deal with issues pertaining to the implementation of the committee system. In this article, the relevant legislative provisions on the committee system for competitive bids in local government are discussed. The functions of each committee are explained and all the cases that have thus far involved the implementation of the committee system are critically analysed. Much attention is given to the cases since they serve as a warning to municipalities to uphold and comply with the rules relating to the roles and composition of the different committees. The cases illustrate how important it is for municipalities to ensure that the different committees are properly constituted and that decisions at meetings are properly taken. They also highlight the importance of the supervisory role of the municipal manager over the different committees. In light of the cases it is clear that failure to comply with all the legislative requirements results in very costly litigation.
Highlights
Over the last decade the procurement procedures of government have received increasing attention in the courts and academic literature
What precisely is the extent of the municipal manager's supervisory role over the three committees? In particular, is the municipal manager entitled to make changes to the specifications, conditions or the rules that have been laid down for conducting the process such as qualification, selection or adjudication criteria, or procedural rules relating to formalities for bids? Is the municipal manager entitled to instruct the bid evaluation committee (BEC) and bid adjudication committee (BAC) to evaluate and adjudicate bids based on such changes? In answering these questions, the unreported case of Ninham Shand (Pty) Limited v Municipal Manager City of Matlosana and Others135 will be discussed, and suggestions will be made on the making of some of the changes mentioned
In order for the different bid committees and the municipal manager to meet their obligations, it is important for committee members and the municipal manager to be familiar with and adhere to the relevant supply chain management (SCM) legislation and to take heed of the National Treasury's guidelines and circulars
Summary
Over the last decade the procurement procedures of government have received increasing attention in the courts and academic literature. This article is timely in that it will critically analyse the relevant legislative provisions in light of all the cases that have far involved the bid committee system at local government level. Even though legislation for national and provincial government provides for the use of the committee system for competitive bids, and in certain respects the relevant provisions correspond with those that apply to local government, there are significant differences. Of particular interest will be the recent case of Actaris South Africa (Pty) Ltd v Sol Plaatje Municipality, Intelligent Metering Systems (Pty) Ltd.. Of particular interest will be the recent case of Actaris South Africa (Pty) Ltd v Sol Plaatje Municipality, Intelligent Metering Systems (Pty) Ltd.7 The court in this case interpreted a number of the legislative provisions dealing with the roles and composition of the different committees.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
