Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)RegulationsMunicipal Supply Chain Management Regulations, 2005Chapter 2: Framework for Supply Chain Management PoliciesPart 2: Acquisition management37. Unsolicited bids |
| (1) | A supply chain management policy must state that the municipality or municipal entity is in terms of section 113 of the Act not obliged to consider unsolicited bids received outside a normal bidding process. |
| (2) | If a municipality or municipal entity decides in terms of section 113(2) of the Act to consider an unsolicited bid, it may do so only if— |
| (a) | the product or service offered in terms of the bid is a demonstrably or proven unique innovative concept; |
| (b) | the product or service will be exceptionally beneficial to, or have exceptional cost advantages for, the municipality or municipal entity; |
| (c) | the person who made the bid is the sole provider of the product or service; and |
| (d) | the reasons for not going through the normal bidding processes are found to be sound by the accounting officer. |
| (3) | If a municipality or municipal entity decides to consider an unsolicited bid that complies with subregulation (2), the municipality or municipal entity must make its decision public in accordance with section 21A of the Municipal Systems Act, together with— |
| (a) | its reasons as to why the bid should not be open to other competitors; |
| (b) | an explanation of the potential benefits for the municipality or entity were it to accept the unsolicited bid; and |
| (c) | an invitation to the public or other potential suppliers to submit their comments within 30 days of the notice. |
| (4) | Once the municipality or municipal entity has received written comments pursuant to subregulation (3), it must submit such comments, including any responses from the unsolicited bidder, to the National Treasury and the relevant provincial treasury for comment. |
| (5) | The adjudication committee must consider the unsolicited bid and may award the bid or make a recommendation to the accounting officer, depending on its delegations. |
| (6) | A meeting of the adjudication committee to consider an unsolicited bid must be open to the public. |
| (7) | When considering the matter, the adjudication committee must take into account - |
| (a) | any comments submitted by the public; and |
| (b) | any written comments and recommendations of the National Treasury or the relevant provincial treasury. |
| (8) | If any recommendations of the National Treasury or provincial treasury are rejected or not followed, the accounting officer must submit to the Auditor General, the relevant provincial treasury and the National Treasury the reasons for rejecting or not following those recommendations. |
| (9) | Such submission must be made within seven days after the decision on the award of the unsolicited bid is taken, but no contract committing the municipality or municipal entity to the bid may be entered into or signed within 30 days of the submission. |