(1) In negotiating or concluding contracts in terms of the Act the contracting authority must consider—
| (a) | subject to section 41(1) of the Act, in the case of a municipality, the procurement provisions of the MFMA and the supply chain management policy of the municipality contemplated in section 111 of that Act, and in the case of a province the procurement provisions of the Public Finance Management Act, 1999 (Act No. 1 of 1999) and the Treasury Regulations made in terms of that Act, as well as the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000) or legislation replacing that Act; |
| (b) | any requirements and model tender and contract documents prescribed or provided in terms of section 42(6) of the Act; |
| (c) | the Regulations Relating to Integrated Fare Systems, 2011 promulgated under Notice R.511 in Government Gazette 34363 of 17 June 2011; |
| (d) | universal design and access requirements and standards published by the Department, or by the Minister in terms of section 8(1)(y) of the Act, and those published in terms of the National Building Regulations and Building Standards Act, 1977 (Act No. 103 of 1977), and generally ensure that there is provision for the needs of targeted categories of passengers; |
| (e) | relevant policies to promote non-motorised transport and accessible transport regarding both public transport operations and infrastructure; |
| (f) | the need to prevent, minimise or reduce the impact of transport on the environment in terms of an environmental strategy by means including the promotion of environmentally friendly public transport and non-motorised transport, combatting climate change and reducing greenhouse gas emissions and considering energy efficiency and emission standards, and possibly mandatory specifications for average fleet emissions; |
| (g) | integration between different modes and services; |
| (h) | the need to promote the economic empowerment of small business and persons previously disadvantaged by unfair discrimination and to prevent the rise or continued existence of monopolies created by previous unfair legislation or practices; |
| (i) | section 197 of the Labour Relations Act, 1995 (Act No. 66 of 1995) and other applicable labour legislation during the transition from one contract to another, where relevant, and |
| (j) | where the proposed operator has provided services in terms of a previous contract with the contracting authority or any other organ of state, the past performance of the operator in performing that previous contract. |
| (2) | Contracting authorities must ensure that provision is made for adequate electronic or physical monitoring of the services being provided in terms of contracts involving subsidies in the manner specified in the model tender and contract documents and any requirements prescribed or provided in terms of section 42(6) of the Act, and in compliance with any Grant Conditions. |
| (3) | Stopgap contracts contemplated in section 41A of the Act must be used only in exceptional circumstances where they are necessary to provide services in the interim while the contracting authority is in the process of conducting negotiations for a negotiated contract or establishing a network, as contemplated in section 41A(1)(c) of the Act, or where there are not yet adequate contracting arrangements in place after expiry of a previous contract, and must not be used where they are likely to delay the conclusion of appropriate negotiated or subsidised service contracts, and may not be renewed. |
| (4) | Where services will be provided in the areas of jurisdiction of more than one municipality in terms of the contract, the municipalities must— |
| (a) | conclude a written agreement between them providing at least for the financial arrangements applicable to the proposed contract between them and taking into account the provisions of the IGRFA, and |
| (b) | where appropriate approach the relevant province or provinces for assistance as contemplated in regulation 8. |
| (5) | Where a proposed contract will impose financial obligations on a municipality beyond the three years covered in its annual budget the municipality must comply with section 33 of the MFMA. |
| (6) | As section 41(1) of the Act provides that a negotiated contract may be concluded once only, a contracting authority may not conclude more than one negotiated contract in terms of that subsection, i.e., by concluding contracts in terms of more than one of the paragraphs (a), (b) or (c) thereof. |
| (7) | In the case of a contract contemplated in section 41(1)(c) of the Act, national or provincial parastatal transport entities must comply with section 54 of the Public Finance Management Act, 1999 (Act No. 1 of 1999), as well as other legislation applicable to the restructuring of parastatal entities, and municipal entities must comply with legislation applicable to their restructuring, before concluding the contract. |
