Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Regulations

Municipal Supply Chain Management Regulations, 2005

Chapter 2: Framework for Supply Chain Management Policies

Part 2: Acquisition management

27. Bid specification committees

Purchase

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(1)	A bid specification committee must compile the specifications for each procurement of goods or services by the municipality or municipal entity.

(2)	Specifications—

(a)	must be drafted in an unbiased manner to allow all potential suppliers to offer their goods or services;

(b)	must take account of any accepted standards such as those issued by Standards South Africa, the International Standards Organisation, or an authority accredited or recognised by the South African National Accreditation System with which the equipment or material or workmanship should comply;

(c)	where possible, be described in terms of performance required rather than in terms of descriptive characteristics for design;

(d)	may not create trade barriers in contract requirements in the forms of specifications, plans, drawings, designs, testing and test methods, packaging, marking or labeling of conformity certification;

(e)	may not make reference to any particular trade mark, name, patent, design, type, specific origin or producer unless there is no other sufficiently precise or intelligible way of describing the characteristics of the work, in which case such reference must be accompanied by the words "equivalent";

(f)	must indicate each specific goal for which points may be awarded in terms of the points system set out in the supply chain management policy of the municipality or municipal entity; and

(g)	must be approved by the accounting officer prior to publication of the invitation for bids in terms of regulation 22.

(3)	A bid specification committee must be composed of one or more officials of the municipality or municipal entity, preferably the manager responsible for the function involved, and may, when appropriate, include external specialist advisors.

(4)	No person, advisor or corporate entity involved with the bid specification committee, or director of such a corporate entity, may bid for any resulting contracts.