Question 2

Question 2 (30 marks)

The Lesedi Local Municipality in Gauteng issued a bid for the construction of a municipal water reservoir according to specifications supplied in the bid documentation. The total contract was estimated at R48 500 000.00 including VAT. In terms of the invitation for bidders, contractors with a CIDB grading of 8CE and higher are required, however, bidders with a CIDB registration of 7CEPE would be considered as well. A compulsory briefing session was held to clarify any questions regarding the bid.

The following tenders were received according to specifications and complete in all respects:

Chibi Construction cc R45 350 500 inc. VAT

NkandlaTrading Projects R44 780 900 incl. VAT

Zondo Projects R49 980 000 incl. VAT

According to the MBD forms completed by the respective bidders, the following information applies:

• Chibi Construction cc
  • The company is a level 5 BBBEE contributor.
  • The contractor has a 9CE CIDB Grading.
• Nkandla Trading Projects
  • The contractor has a 7CE PE CIDB grading;
  • It has recently applied for its BBBEE grading and three days before the closing date it received a rating of 3.
• Zondo Projects
  • The company is rated as a level 3 BBBEE contributor;
  • The contractor has a CIDB grading of 8CE.

With the above information:

1. You are required to calculate the points scored by each bidder and recommend a bidder/tenderer to be awarded the tender. Also indicate what additional information would be required as the bid is above Ten million rand. (10)
2. Briefly discuss the following pillars of supply chain where applicable demonstrate your understanding by means of examples:
   1. Accountability and Reporting;
   2. Ethics and fair dealings
   3. Open and effective competition (10)
3. Briefly discuss four steps involved in best procurement processes for construction procurement (10)