bunkering industry study - durban

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Contract number: 7G - 14278 Request for Quotations: Bunkering Industry Study Economic Development and Investment Promotion Unit EThekwini Municipality

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Page 1: Bunkering Industry Study - Durban

Contract number:

7G - 14278

Request for Quotations:

Bunkering Industry Study

Economic Development and Investment Promotion Unit

EThekwini Municipality

Page 2: Bunkering Industry Study - Durban

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Contents

1. Project Title .................................................................................................................................... 2

2. Background Information ............................................................................................................... 2

3. Overall Objective of Project .......................................................................................................... 4

4. Scope of Project ............................................................................................................................. 4

5. Tasks, Duties and Deliverables ..................................................................................................... 6

6. Milestones and Timeframes ......................................................................................................... 7

7. End products and Format .............................................................................................................. 7

8. Copyright on Documents .............................................................................................................. 7

9. Project Team Requirements ......................................................................................................... 7

10. Meetings and Presentations Required to be Undertaken .......................................................... 8

11. Proposal and Financial Issues ....................................................................................................... 8

12. Project Budget/Professional Re-imbursement ........................................................................... 11

13. Closing Date and Time .................................................................................................................. 11

14. Council Contact Persons and Details ........................................................................................... 11

Appendix .................................................................................................................................................... 12

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1. Project Title

Request for Proposals for the Bunkering Industry Analysis Study

2. Background Information

The Economic Development and Investment Promotion Unit (ED& IPU)has identified the

Bunkering Industry as one of the least transparent of all shipping sectors. There is a need to

uncover ways in which the Port of Durban can benefit through tapping into the supply side

of the industry, exploiting the market, and developing new technologies to ensure that the

Port of Durban and its economy are the main beneficiaries of the service termed

“bunkering”.

The EThekwini Municipality has defined 3 future technology options for vessel compliance

with Emission Control Area requirements, as determined by global governance standards

as from 2015:

There are basically three main options for future compliance with the above:

Operation on low sulphur fuel oil/marine gas oil (MGO).

Operation on heavy fuel oil (HFO) with an exhaust gas scrubber.

Operation on liquefied natural gas (LNG) or alternative fuels.

In addition to the above-mentioned options there are indeed more alternative fuels (e.g.

methanol, DME, nuclear etc.), but currently the general perception is that the above-

mentioned are the main options. The key fuel source that is believed to be a viable

alternative, by the EThekwini Municipality is LNG. An important aspect of LNG as a marine

fuel, is specialized and expensive infrastructure and supply chain elements. These taken

collectively are considered as a significant barrier to the widespread adoption of LNG as

fuel. In a similar fashion to the quandary faced by automobile manufacturers and users

wishing to convert to alternative fuel cars, the minimum network size for viability bedevils

the commencement of such systemic changes.

The gas providers/bunker suppliers are not very keen to invest in the infrastructure

necessary to supply the merchant fleet with LNG while the demand for LNG is too low to

sustain bunker operations and infrastructure. On the other hand the ship-owners do not

wish to invest in LNG-fuelled ships if the LNG supply network is not sufficiently developed.

It is therefore left to the state, in this particular instance the state (as represented by the

municipality), to arbitrate the temporal dissonance between viability of demand and supply

networks. This classic market failure will not resolve itself without strategic positioning by

EThekwini, as none of the market players, or any other state player, has either the

incentives or the appetite to bridge this divide. It represents an opportunity for EThekwini

to drive a new industry with all its job creation and economic development opportunities.

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In addition, this step change allows EThekwini to achieve a significant influence on the level

of BBBEE in bunkering, that has to date not been achieved. The economic development

benefits and transformation benefits of strategically positioning EThekwini are that as the

architect of the resolution of the market failure it is allowed to set the rules of the game

and thereby define the beneficiary classes and location of value that is created and

distributed by the “new” industry.

Objectives and Methodology of the LNG Bunkering Infrastructure Study

Our main aim is to understand how LNG bunkering infrastructure and services may develop

in the sub-region, how best to position the initiatives of EThekwini is to leverage value from

the complexities of the pace of development of the industry and what specific initiatives

are required to position the Port of Durban as the regional hub for LNG provision for

maritime fuel purposes.

Therefore our overall vision is that the study will establish a clear framework for the role

and participation of EThekwini as the lead player in defining the nature and structure of

LNG provision as maritime fuel for the Port of Durban.

The reduction of emissions from shipping needs to be approached from different

geographical levels, locally with respect to air pollution from ships at ports, regionally

through emission control areas and globally through global limits and coordinated action

between shipbuilders, designers, ship-owners, LNG suppliers, bunker suppliers and ports.

The study should look at the current Bunkering Value Chain from a global, national and local

perspective and assess the opportunities for LNG bunkering respectively. The study should

make use of a top down approach in order to provide a perspective on future LNG fuel

demand in deep-sea trades; looking at trading patterns, bunkering demand and LNG supply

availability issues in order to derive the demand. A model to forecast the demand for LNG

based on different scenarios should be provided along with the outlook for the new (ship?

Or LNG demand?) building demand in the future. The stages of the study must be

illustrated.

The Bunkering sector forms an integral part of the shipping industry as the provision of fuel

enables transport by sea. Fuel is our main requirement for transport hence Bunkering is

vital to vessels not only operating locally, but internationally as well. Over the years cargo

vessels have grown, both in size and number to cater for international trade. Vessel

technology has advanced rapidly enabling the use of Liquefied Natural Gas (LNG) as a more

viable and efficient option to diesel. These advancements mean higher productivity for

shipping lines at a reduced fuel cost. Emission Control Area’s have been created in order to

comply with the applicable Environmental Management Act, taxes are being levied on

emissions and penalties are implemented for vessels responsible for polluting the oceans.

With such strict standards, the move towards LNG is a positive one; however this all

depends on the availability of LNG.

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3. Overall Objective of Project

The primary objective of the project is to develop a holistic response to the current and

future state of the bunkering industry that guides how value creating activity can be

embedded within EThekwini, and in particular, the way in which LNG is to play a key role in

such future bunkering supply and how the value created by such processes are distributed.

The ultimate outcome would be to leverage and transform the current industry supply

chain network so as to add value at certain points which create significant impacts on the

Bunkering Industry and thus being greatly beneficial to the Durban economy. The ability to

effect these are to be primarily achieved by the development of the role of EThekwini as

the facilitator and enabler of the LNG supply network in the Port of Durban.

The current industry value chain analysis should look at the background and underlying

aspects of the sector; it should link the value chain with the goals, strategies and objectives

of the organisations within Durban, the current situation as well as the way forward in

terms of industry trends and best practice. This is with respect to current bunkering

practice.

The study should then pattern and model these value chain elements for the LNG industry

to establish a future LNG value chain model and framework for the Port of Durban that

addresses the key economic development and transformation objectives of the city.

A key output shall include assessing and identifying strategic ports and locations

globally for LNG bunkering infrastructure facilities and compare them with current

bunkering patterns. This study shall be carried out in co-operation with the company

Maritime Strategies International Ltd. Subsequently, Lloyd’s Register aims to facilitate

and develop expert opinion on design and technology developments and propulsion

options to support key industry players.

4. Scope of the Project

The proposed study should include an in depth analysis of the Bunkering Industry Study

within eThekwini Municipality by focussing on the following elements:

Literature Review

Alignment with International, National, Provincial and Local Policies and Strategies

supporting the development of the Bunkering Industry Study

International and Local Best Practice, Case Studies and Trends

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The Structure of the South African Bunkering Industry

o Size of industry

o Key statistics

o Competitiveness

o Characteristics

o Environment

o Potters Drawing of Competitiveness

o Pestle Analysis and Identify key sector drivers and outputs

o Identify areas for South African value adding

The Durban Bunkering Industry Sector

o Legislative environment

o Key statistics and trends

o Growth factors

o Size of industry

o Market segmentation

o Human resources and skills

o Characteristics

o Key players and their roles

o Current initiatives

o Sector needs

o Agencies and associations

o Tertiary institutions

o Supporting industries

o Market/value chain linkages

Stakeholders to be consulted

o Government (National, Provincial, Local Government, Stakeholders and

Agents/State Enterprises)

o Bunkering Operators, Fuel Suppliers and Sources.

o SAMSA

o Port Authorities

Key interventions of the EThekwini Municipality to:

o resolve the temporal market failures

o support infrastructure development and define appropriate market

structures for the sector in the Port of Durban

o ensure that the transformation objectives are met in the “new” industry

o prevent capture and appropriation of the value created in an inappropriate

manner

o ensure that local economic development and job creation objectives are set

and met

Recommendations for the sector and local government, based on findings from the

report, and preliminary cost estimates of implementing all recommendations

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5. Tasks, Duties and Deliverables

The appointed service provider will be required to undertake all work pertaining to the

analysis and forecasting of the current Bunkering Industry and its future LNG components

as specified in the previous section for the successful completion of this project.

The deliverables/end product includes:

Inception report

o This should contain details on the overall research approach, as well as

details of the project team that will be responsible for execution of each

stage of the project. The inception report should also include a detailed

exposition of the research outputs.

Interim Report

o Report on key findings on the value chain and LNG scenarios. To be

delivered as per the original time schedule for report delivery, allowing for

feedback from the Senior Manager and Programme Managers and

corrections as necessary, prior to project deadlines.

Final reports

o Report on findings and specific recommendations covering the project

objectives. The results derived must be quality controlled, analysed and

interpreted in accordance with the objectives and scope of the study.

Project Steering Committee Responsibilities

o Setting up of Steering Committee and Terms of Reference, A project

steering committee needs to be set up and should include key stakeholders

from local government, industry representatives and the appointed service

provider. PSC meetings need to take place on a monthly basis or as deemed

necessary by the client.

o Facilitate the formulation and signing of the Memorandum of

Understanding by the identified Stakeholders.

All research results/reports have to be presented in appropriate electronic as well as printed

format, easily accessible and user-friendly: One printed hard copy of each report should be

delivered for each phase. Each report should also be presented in electronic format on CD, and

be MS Word compatible.

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There should also be two hard copies of the final full report together with an abridged version

of the full report of approximately 10 to 15 pages. The consultants will also be required to

present their findings at the end of the study.

6. Milestones and Timeframes

The service provider is expected to commence with the project immediately after

appointment. The project is to be completed after 4 months from the date of commencement.

The timeframes for the various phases of the project will be discussed upon appointment.

7. End products and Format

The end products, as specified above are to be supplied to ED& IPU in electronic and hard

copy format. Please note that the electronic copies are to be supplied in Microsoft Word

format.

8. Copyright on Documents

Please note that as a requirement of this project, all output and copyright thereof will

become the property of eThekwini Municipality. The findings and results from this project

shall by no means be used by any other sources. In the event of termination of this

appointment, ED& IPU reserve the right to use all or any parts of the documentation for

completion of the project.

9. Project Team Requirements

The project team will be required to possess the following knowledge and/or experience;

Maritime Expert

o Masters qualification in Maritime Studies, Value Chain Management or

Economics

o 5+ Years experience in economic research in the maritime sector

o Good Knowledge of the Bunkering industry

o Good communication skills – verbal and written

o Good stakeholder engagement skills

o Available for the entire duration of the project

Team Leader

o Post graduate qualification in Value Chain Management, Maritime studies

or Economics

o Substantial experience in economic research

o Good knowledge of and experience in the Bunkering industry (5+ years)

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o Experience in similar project work and an in-depth consultative capacity

o Good writing and documentation skills

o Project Management experience

o Available for the duration of the project

Senior Researcher

o Academic degree with specialisation in Maritime, Economics or Value Chain

Management

o Between 3 to 5 years research experience and experience in similar projects

o Good knowledge of the ICT and Innovation sector

o Available for the duration of the project

Junior Researchers

o University degree or extensive economic development research experience

o Basic research skills

o Available for the duration of the project

10. Meetings and Presentations Required to be Undertaken

The appointed service provider will be required to attend meetings at Council to discuss

the requirements for the project. Meetings will also be held to discuss the progress of the

project at intervals to be specified upon appointment.

The appointed service provider will be required to present the draft and final reports to the

PSC and to Council.

11. Proposal and Financial Issues

All interested service providers should submit a proposal that displays an understanding of

the requirements of the project. The proposal should include a project plan which consists

of a cost breakdown as well as timelines, keeping within the deadline specified in these

terms.

In addition, service providers are required to submit a list of all team members that would

work on the project as well as a two page CV on each member. Please note that the

appointment will be made in terms of the Council’s Procurement Policy.

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

The quotation (to be included with the proposal) shall include total cost, VAT and

disbursements as separate figures. A schedule of projected time and financial cost

per phase, and per staff member must be provided

Tax clearance certificate

(MBD 9) Forms:

o Original Certificate of Independent Bid Determination

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o Original Declaration of Interest

o Original Declaration of Municipal Fees

o Original BBBEE certification

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

the final terms with the service provider, as well as any additional budget which may be

allocated to the project.

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

milestones and will be outlined in the letter of appointment. Final payment will be paid on

full completion of the project and the receipt of the final set of deliverables. The total

contract value is not to exceed R 200 000 .00 Inclusive of VAT and Disbursements.

The adjudication of this Tender will be in terms of MFMA Circular 53 (Municipal Finance

Management Act No. 56 of 2003), whereby FUNCTIONALITY is included in this bid as a

criterion and will be assessed in terms of the evaluation criteria detailed in the table below.

Any bid which fails to meet the minimum threshold of 70 out of 100 points for functionality

will be disqualified. Thereafter, only qualifying bids will be evaluated in terms of the 80/20

preference points system where 80 points is used for price only and 20 points are used for

BEE points.

The adjudication of this Tender will be in terms of the criteria presented below and be in

compliance with the scope, purpose, and methodology of the intervention.

Evaluation Process

CRITERIA MAX SCORE

STAGE 1

1. Response to the brief 30

1.1. Does the proposal clearly demonstrate good understanding of the brief? All key deliverables are distinctly identified and adequately address.

o Nil – No submission o Poor (score 40%) – The proposal shows limited understanding of

the brief and project, has not adequately dealt with the key challenges.

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

o Good (score 90%) – the proposal clearly demonstrates an understanding of the project’s vision and the brief. All key components are adequately addressed.

o Very good (score 100%) - A unique proposal that is strongly aligned to and identifiable with the project. It identifies and deals well with all the brief criteria and has the potential to leave a broader legacy.

1.2. Is the methodology innovative, detailed to adequately address all elements of the project and the technical approach stating how each will be executed?

o Nil – No submission

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o Poor (score 40%) –The technical approach and the methodology is poor/ is unlikely to satisfy the project objectives or requirements. The tenderer has misunderstood certain aspects of the scope of work and does not deal with the critical aspects of it. The methodology is unacceptable.

o Satisfactory (score 70%) – The approach is generic and not tailored to address the specific project objectives and methodology. The approach does not adequately deal with the critical characteristics of the project. The quality plan, manner in which risk is managed is too generic.

o Good (score 90%) – The approach is specifically tailored to address the specific project objectives and methodology and is sufficiently flexible to accommodate changes that may occur during execution. The quality plan and approach to manage risk etc. is specifically tailored to the critical characteristics of the project. The methodology is reasonable.

o Very good (score 100%) – Besides meeting the “good” rating, the important issues are approached in an innovative and efficient way, indicating that the tenderer has outstanding knowledge of the state-of –the art approaches. The methodology is comprehensive.

2. Expertise and experience 35

Does the service provider and team members have relevant and sufficient

experience and expertise in projects of similar nature and scale?

o Nil – No submission o Poor (score 40%) – The team has limited relevant experience in

projects of similar nature and has not taken a project of this magnitude. The proposed team is weak in important areas and is unlikely to deliver within the specified time frames.

o Satisfactory (score 70%) – The tenderer has relevant experience in projects of similar nature but has not directly undertaken a project of this magnitude. Key personnel allocated to the project have reasonable relevant experience.

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

o Very good (score 100%) – The tenderer has outstanding experience in projects of similar nature and has taken many such projects. Key personnel allocated to the project have outstanding relevant experience.

3. Capacity to deliver and capability 20

Has the operational plan and resources clearly explained?

o Nil – No submission o Poor (score 40%) – The operational plan is sketchy, there is no

clarity in terms of resources aligned to the project. o Satisfactory (score 70%) – Operational plan is complete &

reasonably detailed. Resources appear adequate. o Good (score 90%) – besides meeting ‘satisfactory’ rates and

resources have been clearly defined and make provision for key risk areas.

o Very good (score 100%) – Besides meeting “good” rating, the plan make provision for every eventuality.

4. Cost Breakdown 15

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Are the costs of work streams in proportion to their contribution to the end

products? Is the cost breakdown clear i.e. cost per item?

o Nil – No submission o Poor (score 40%) – unacceptable proportion o Satisfactory (score 70%)– adequate proportion o Good (score 90%) – reasonable proportion o Very good (score 100%) – fully in proportion

TOTAL 100

STAGE 2

Price: overall budget of the project 80

BEE: empowerment status 20

GRAND TOTAL 100

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

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

PROCEED TO STAGE 2.

12. Project Budget/Professional Re-imbursement

The consultant is to prepare a detailed budget which is not to exceed R 200 000 inclusive of

disbursements and VAT.

13. Closing Date and Time

THE CLOSING DATE FOR SUBMISSIONS OF PROPOSALS IS 11H00 ON THE 30thMay 2014.

Each service provider must submit an original Proposal and 3 copies marked “Bunkering

Industry Study” and signed by or on behalf of the respondent. Proposals and copies are to

be sealed in an envelope and hand delivered to Ground Floor Engineering Unit Building,

166 KE Masinga Road, Durban addressed to Mrs Noma Sokhela, Economic Development

and Investment Promotion Unit.

14. Council Contact Persons and Details

For enquiries please contact:

Ms Noma Sokhela Mr Rahin Ramjuan

Economic Development and Economic Development and

Investment Promotions Unit Investment Promotions Unit

Tel: 031 311 4096 Tel: 031 311 4251

Email: [email protected] Email: [email protected]

Ms Aurelia Albert

Economic Development and

Investment Promotions Unit

Tel: 031 311 4015

Email: [email protected]

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Appendix

A. DECLARATION OF INTEREST

1. Any legal person, including persons employed by the principal, or persons having a kinship with persons employed by the principal, including a blood relationship, may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons employed by the principal, 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 and/or take an oath declaring his/her interest, where-

- the bidder is employed by the principal; 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 Are you or any person connected with the bidder, employed by the principal? YES / NO

2.1.2 If so, state particulars.

__________________________________________________________

__________________________________________________________

2.2 Do you, or any person connected with the bidder, have any relationship (family, friend,

other) with a person employed by the principal and who may be involved with the evaluation and

or adjudication of this bid? YES / NO

2.2.1 If so, state particulars.

__________________________________________________________

__________________________________________________________

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2.3 Are you, or any person connected with the bidder, aware of any relationship (family, friend,

other) between the bidder and any person employed by the principal who may be

involved with the evaluation and or adjudication of this bid? YES / NO

2.3.1 If so, state particulars.

__________________________________________________________

__________________________________________________________

__________________________________________________________

DECLARATION

I, THE UNDERSIGNED (NAME) .................................................................................................................

CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 2.1 TO 2.3.1 ABOVE IS CORRECT. I

ACCEPT THAT THE PRINCIPAL MAY ACT AGAINST ME SHOULD THIS DECLARATION PROVE TO BE

FALSE.

__________________ ___________________

SIGNATURE DATE

__________________ __________________

POSITION NAME OF BIDDER

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B. DECLARATION OF MUNICIPAL FEES

I/We do hereby declare that the Municipal fees of ______________________ (company name),are,

as at the date of the tender closing, fully paid up, or arrangements have been concluded with the

Municipality to pay the said fees :

ACCOUNT ACCOUNT NUMBER

ELECTRICITY ____________________________

WATER ____________________________

RATES ____________________________

JSB LEVIES ____________________________

OTHER ____________________________

I acknowledge that should it be found that the Municipal fees are not up to date, the Council may

take such remedial action as is required, including termination of contract, and any income due to

the Contractor shall be utilised to offset any monies due to the Council.

_______________________ _________________________

Name Signature

_______________________ _________________________

Designation Date

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C. CERTIFICATE OF INDEPENDENT BID DETERMINATION

1.This Municipal Bidding Document (MBD) 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.Municipal Value Regulation 38 (1) prescribes that a value chain management policy must provide measures for the combating of abuse of the value chain management system, and must enable the accounting officer, among others, to:

a. take all reasonable steps to prevent such abuse;

b. reject the bid of any bidder if that bidder or any of its directors has abused

the value chain management system of the municipality or municipal entity or has committed any improper conduct in relation to such system; and

c. cancel a contract awarded to a person if the person committed any corrupt

or fraudulent act during the bidding process or the execution of the contract.

4.This MBD 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 bid-rigging.

5.In order to give effect to the above, the attached Certificate of Bid Determination (MBD9) 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.

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MBD 9CERTIFICATE OF INDEPENDENT BID DETERMINATION I, the undersigned, in submitting the accompanying bid:

________________________________________________________________________ (Bid Number and Description)

in response to the invitation for the bid made by: __________________________________________________________________________ (Name of Municipality / Municipal Entity)

do hereby make the following statements that I certify to be true and complete in every respect: I certify, on behalf

of:_______________________________________________________that: (Name of Bidder) 1. I have read and I understand the contents of this Certificate; 2. I understand that the accompanying bid will be disqualified if this Certificate is found notto be true and complete in every respect; 3. I am authorized by the bidder to sign this Certificate, and to submit the accompanyingbid, on behalf of the bidder; 4. Each person whose signature appears on the accompanying bid has been authorized bythe bidder to determine the terms of, and to sign, the bid, on behalf of the bidder;

6.For the purposes of this Certificate and the accompanying bid, I understand that theword “competitor” shall include any individual or organization, other than the bidder,whether or not affiliated with the bidder, who:

a) has been requested to submit a bid in response to this bid invitation; b) could potentially submit a bid in response to this bid invitation, based ontheir

qualifications, abilities or experience; and c) provides the same goods and services as the bidder and/or is in the sameline of business as

the bidder 6. The bidder has arrived at the accompanying bid independently from, and withoutconsultation, communication, agreement or arrangement with any competitor. Howevercommunication between partners in a joint venture or consortium³ will not be construedas collusive bidding. 7. In particular, without limiting the generality of paragraphs 6 above, there has been noconsultation, communication, agreement or arrangement with any competitor regarding:

a) prices; b) geographical area where product or service will be rendered (marketallocation) c) methods, factors or formulas used to calculate prices; d) the intention or decision to submit or not to submit, a bid; e) the submission of a bid which does not meet the specifications andconditions of the bid; Or f) bidding with the intention not to win the bid.

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8. In addition, there have been no consultations, communications, agreements orarrangements with any competitor regarding the quality, quantity, specifications andconditions or delivery particulars of the products or services to which this bid invitationrelates. 9. The terms of the accompanying bid have not been, and will not be, disclosed by thebidder, directly or indirectly, to any competitor, prior to the date and time of the officialbid opening or of the awarding of the contract.

10. I am aware that, in addition and without prejudice to any other remedy provided tocombat any restrictive practices related to bids and contracts, bids that are suspiciouswill be reported to the Competition Commission for investigation and possible impositionof administrative penalties in terms of section 59 of the Competition Act No. 89 of 1998and or may be reported to the National Prosecuting Authority (NPA) for criminalinvestigation and or may be restricted from conducting business with the public sectorfor a period not exceeding ten (10) years in terms of the Prevention and Combating ofCorrupt Activities Act No. 12 of 2004 or any other applicable legislation. ……………………………………… ……………………………… Signature Date ……………………………………… ………………………………

Position Name of Bidder Date

³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract.