Case Law[2024] ZAGPPHC 932South Africa
Proxa South Africa (Pty) Ltd v Trans-Caledon Tunnel Authority and Another (66806/20) [2024] ZAGPPHC 932 (20 September 2024)
High Court of South Africa (Gauteng Division, Pretoria)
20 September 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Proxa South Africa (Pty) Ltd v Trans-Caledon Tunnel Authority and Another (66806/20) [2024] ZAGPPHC 932 (20 September 2024)
Proxa South Africa (Pty) Ltd v Trans-Caledon Tunnel Authority and Another (66806/20) [2024] ZAGPPHC 932 (20 September 2024)
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sino date 20 September 2024
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 66806/20
(1)
REPORTABLE: YES/NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED.
DATE:
20/09/2024
SIGNATURE:
N V KHUMALO J
In
the matter between:
PROXA
SOUTH AFRICA (PTY) LTD
APPLICANT
and
TRANS-CALEDON
TUNNEL AUTHORITY
1
ST
RESPONDENT
NAFASI
WATER TECHNOLOGIES (PTY) LTD
2
ND
RESPONDENT
This
judgment was handed down electronically by circulation to the
parties' representatives by email. The date and time of hand-down
is
deemed to be 20 September 2024.
JUDGMENT
Khumalo
N V J
Introduction
[1]
This is a review application in terms of s 6 read with the provisions
of s 8 of the Promotion of Administrative Justice Act 3 of 2000
(PAJA), in which the Applicant seeks an order in the following terms:
[1.1]
The following two decisions taken by the 1
st
Respondent
,as conveyed to the 2
nd
Respondent on 15 December 2020,
are
hereby reviewed and set aside:
[1.1.1]
The decision to appoint the 2
nd
Respondent as its operator
in relation to the Acid Mine Water Drainage Facility at the Central
Basin under contract No: TCTA- 08-030
(“Central Basin
decision”); and
[1.1.2]
The decision to appoint the 2
nd
Respondent as its operator
in relation to the Acid Mine Water Drainage Facility at the Eastern
Basin under contract No: TCTA -
08-032 (“Eastern Basin
decision”);
[1.2]
The two contracts concluded between the 1
st
and 2
nd
Respondent pursuant to the Central Basin decision and the Eastern
Basin decision are cancelled and set aside;
[1.3]
The 1
st
Respondent is directed to commence a
fresh tender process in relation to both the Central and Eastern
Basin decisions on substantially
the same terms as the tender
processes that commenced on 1 July 2020 under the same contract
numbers according to the following
timetable:
[1.3.1]
in 30 days to this order the 1
st
respondent must publish a
new invitation to bidders calling for fresh bid submissions to be
lodged with its procurement officer;
[1.3.2]
The invitation to bidders shall remain open for bid submissions to be
lodged by prospective bidders for a period of 30 days
after the date
referred to in paragraph 3.1 where after no further bid submissions
shall be received;
[1.3.3]
The fresh bids submitted shall be evaluated and adjudicated within 30
days of the date referred to in paragraph 1.3.2 and
a new operator
shall be appointed at both Eastern and Central Basin facilities;
[1.3.4]
The new operator shall commence operations at both Eastern and
Central Basin facilities within 30 days of the date referred
to in
paragraph 3.3;
[1.4] The 1
st
Respondent to pay the costs.
[2]
The matter was enrolled on the 3
rd
Court motion roll and
heard over a period of a day.
Parties
3The
Applicant, Proxa South Africa (Pty) Ltd (“Proxa”), is a
private limited company incorporated and registered in
accordance
with the Company Laws of South Africa. Its principal business
activities include industrial water treatment. It is hereinafter
referred to as “Proxa.”
[4]
The 1
st
Respondent, Trans-Caledon Tunnel Authority
(“TCTA”), is a state owned entity charged with financing
and implementing
bulk raw water infra structure projects that
operates under the agency of the Department of Water and Sanitation
(“the Department”),
a National Department responsible for
the country’s water resources in respect of usage, equitable
allocation and distribution.
Background
facts
[5]
TCTA, as the Department’s agent is mandated to assist the
government in its
pursuit of water security and realisation of its
Constitutional obligation of ensuring universal access to this
essential resource
for all citizens. The fulfilment of its mandate is
regulated in terms of s 217
[1]
of the Constitution of the Republic of South Africa, 1996 (“the
Constitution”), the
Public Finance Management Act 1 of 1999
(PFMA), Preferential Procurement Policy Framework Act 5 of 2000
(PPPFA) and falls subject to PAJA, which TCTA actions are expected
to
abide by.
[6]
In keeping with its mandate TCTA established water treatment plants
which became known
as the “Eastern Basin and Central Basin”
(also referred to as “the facilities”). Due to a decrease
in gold
mining operations on the Witwatersrand and the rising water
table, there has been contamination of the groundwater with mining
waste and heavy metals in both the Central and Eastern Basins of the
Witwatersrand. This is commonly referred to as “acid
mine
drainage” (AMD). TCTA‘s mandate was to appoint a suitable
operator for the operations and maintenance of the two
facilities.
Every five (5) years TCTA will make the appointment after following a
public procurement process as contemplated in
s 217 (2) of the
Constitution and in compliance with s 2 of the PPPFA
[2]
.
[7]
On 1 July 2020, TCTA issued a Request for Tender (RfT) for provision
of the operational
and maintenance services for the AMD treatment
plants at both of its facilities, for the prescribed 5-years period.
The incumbent
holder’s 30-month operational and maintenance
services contract on the two facilities, which was Water Solutions
South Africa
and Proxa South Africa Joint Venture referred to as
WSPJV was to expire on 31 January 2021.
## [8]
The tender proposal was to be evaluated in terms of, inter alia, s 2
(1) (a)[3]of thePreferential
Procurement Policy Framework Act, 2000 (No. 5 of 2000),
with a three phase approach adopted which was to follow a two
envelope criteria, that is Envelope “A” and “B.”
A tenderer would have to qualify in terms of the first phase which
was a pre- qualification of the tenderers on the opening of
the first
envelope. On qualification on first phase the tenderer will then
proceed to be considered in terms of the second phase
and if they
qualify in terms of the 2ndphase,
they will then advance to the third phase. In terms of the first
phase the prequalification requirement was for a tenderer
to be a
level B-BBEE 4 contributor or higher. In the second phase the
tenderers were to be evaluated in terms of the functional
evaluation
(measured from the company experience and key personnel
qualifications and experience) for which they will have to qualify
to
proceed to the third phase for further evaluation on price and must
be B-BBEE compliant at the time of the award/decision.
[8]
The tender proposal was to be evaluated in terms of, inter alia, s 2
(1) (a)
[3]
of the
Preferential
Procurement Policy Framework Act, 2000 (No. 5 of 2000)
,
with a three phase approach adopted which was to follow a two
envelope criteria, that is Envelope “A” and “B.”
A tenderer would have to qualify in terms of the first phase which
was a pre- qualification of the tenderers on the opening of
the first
envelope. On qualification on first phase the tenderer will then
proceed to be considered in terms of the second phase
and if they
qualify in terms of the 2
nd
phase,
they will then advance to the third phase. In terms of the first
phase the prequalification requirement was for a tenderer
to be a
level B-BBEE 4 contributor or higher. In the second phase the
tenderers were to be evaluated in terms of the functional
evaluation
(measured from the company experience and key personnel
qualifications and experience) for which they will have to qualify
to
proceed to the third phase for further evaluation on price and must
be B-BBEE compliant at the time of the award/decision.
[9]
Proxa and Nafasi Water Technologies (Pty) Ltd (“Nafasi”),
herein cited
as the 2
nd
Respondent were two of the seven
bidders that tendered their bids for the two contracts and identified
as T2 (Proxa) and T5 (Nafasi),
in the tender documents. They had all,
except for one bidder, proceeded through to the second phase, having
satisfied the prequalification
requirement by tendering their B-BBEE
qualifying certificates.
[10]
On 22 September 2020 TCTA disqualified Proxa from the tender process
due to its failure in the
functional evaluation to score the 60 out
of a 100 points required for it to qualify to proceed to the third
phase for price evaluation.
Proxa had apparently scored 53 and 47
points for the Eastern and Central Basin respectively. As a result,
it was amongst the three
bidders in terms of the Central Basin and
four other bidders in terms of the Eastern Basin that were eliminated
from the process.
With only three bidders qualifying for the third
phase for the Central Basin and two bidders for the Eastern Basin.
[11]
Nafasi being one of the bidders that qualified to proceed to the
third phase for both facilities,
was ultimately the successful bidder
and on 15 December 2020 awarded the contracts no -080-30 and -080-32
for the operation and
the maintenance of both the Eastern Basin and
the Central Basin to assume operations on 1 February 2021. Proxa on
the other hand,
and all other unsuccessful tenderers were officially
notified of their unsuccessful bids on 21 December 2021.
[12]
Notwithstanding its elimination earlier in the bid, Proxa contests
the appointment of Nafasi
as the successful bidder. It initially
contended that Nafasi was not supposed to have succeeded in its bid
as it failed to comply
with the requirement of being B-BBEE compliant
at the time of the third phase evaluation process. Furthermore, Proxa
disputed that
Nafasi was properly evaluated in the second phase, that
is on the Functional criteria, arguing that the experience and
qualifications
of Nafasi’s key personnel was not properly
vetted as Nafasi failed to submit CVs for the personnel, which it had
alleged
was a requirement in terms of the RfT process but later
conceded that it was actually not a requirement.
[13]
Notwithstanding the concession made on the CVs not being a RfT
requirement, Proxa later persisted
to argue that Nafasi‘s
evaluation nevertheless could not have been possible without the CVs,
from which its personnel’s
experience should have been vetted
in terms of skills required. Hence Proxa sought the relief in terms
of PAJA to set aside TACT’s
decision to award Nafasi the tender
and for an order to reissue and restart the tender process as per the
prayers in the amended
Notice of Motion. It then limited its
challenge to s 6 (2) (f) (ii) (cc) of PAJA.
[14]
Proxa however belatedly in its Further Supplementary Affidavit
abandoned its contention on the B-BBEE certificate, putting
the blame
for having pursued that avenue on TCTA’s failure to timeously
provide the relevant information. It also no longer
based its
contention on the failure by Nafasi to furnish CVs for its key
personnel but challenged the basis upon which Nafasi’s
key
personnel’s experience was assessed without the CVs. It
disputed that it was possible.
[15]
Consequently, the only issue which was still pending at the hearing
of the Application was whether
or not Nafasi was properly or
rationally scored in the functional evaluation phase, there being
sufficient information for TCTA
to do a proper valuation, or was
Nafasi supposed to be disqualified for lack of relevant information.
In essence the issues that
arises are therefore whether or not the
decision of TCT reviewable in terms of s 6 of PAJA upon which the
decision to award Nafasi
the tender is to be set aside.
[16]
Another issue raised by Proxa was with regard to the costs in part A
of the Application that
Proxa launched on 23 December 2020 by way of
urgency, seeking an interim order interdicting the resumption of the
contracts by
Nafasi and challenging its disqualification alleging
that it was improperly disqualified. Proxa had prior the Urgent
Application
and before the finalisation of the bid process requested
reasons for its disqualification. An interim order was granted to
preserve
the contract that had expired. Subsequent the order Proxa
was not so keen to proceed with the contention of its
disqualification
on the Eastern Basin tender. It continued with its
argument that its bid for the Central Basin where it had scored 53
points was
unlawfully disqualified as its key personnel’s
qualifications and experience was supposed to put it in good stead to
obtain
more points than what was allocated. Further that the unlawful
disqualification of its bid tainted the whole process, hence it
sought in this Application (which is part B) the review and the
setting aside of the TCTA decision.
[17]
Finally, Proxa totally abandoned the contention on its
disqualification and the interim order
for preservation of the
expired contract until the decision on the review. On receipt of the
Rule 53 record, Proxa had in its Further
Supplementary Affidavit
pointed out that the record show that according to the Tender
Evaluation Committees (“TEC”)
only Nafasi and Murray and
Roberts Water Technoveer were still in the running on the last phase.
The TECs on both facilities
recommended that Nafasi be
appointed as the preferred bidder. However, the TCTA’s Bid
Adjudication Committee (“BAC”)
instructed both TECs to
revise their reports to indicate that Murray Roberts was disqualified
as its Envelope B did not contain
a completed price schedule. No Bill
of Quantities was submitted for the main offer. BAC then designated
Nafasi, being the only
bidder that remained standing in the last
phase, the preferred bidder. TCTA then concluded with Nafasi the
contracts for both the
Eastern and the Central Basin.
[18]
Proxa ultimately abandoned the contention on its disqualification,
inversely proceeded to challenge
the qualification of Nafasi as a
preferred bidder alleging that none of the tenderers that submitted a
bid for the July RfT qualified
for either the Eastern or Central
Basin contract, including Nafasi. Further that, the decision to
appoint Nafasi was accordingly
unlawful as there was no rational
basis upon which the TEC and the BAC could have concluded that Nafasi
receive 60 points or more
on functionality. Nafasi was therefore
supposed to have been also disqualified at Envelope A phase.
[19]
Proxa contention was based on the following allegations:
[19.1]
That on the functionality evaluation, tenderers were scored out of a
100 points of which 40 points referred to the
tenderer and 60 to the
tenderer’s key personnel. Provided the tenderer’s key
personnel have the requisite qualifications;
they were to be scored
only on the relevant experience that they had. The only rational way
to evaluate the relevant experience,
which is how TACT alleges to
have done it, was through the CVs of key personnel. Whilst Nafasi is
the only tenderer at both the
Eastern and the Central Basin that did
not submit any CVs.
[19.2]
In the RfT the first relevant document in Section 1 reads
“Information to tenderers” and has a template
that the
tenderers were required to complete when providing the information
required in Form 2. In Table 3 there is a document
titled Functional
Evaluation Criteria. The second relevant document in the RfT is the
Template that the tenderers were required
to complete when providing
information in Form 2 titled ‘Evaluation Table Form 2 Personal
Experience.’ In the
document there is a description of
the 6 key personnel roles that the tenderers must provide information
on. There is also a requirement
for the stipulation of the minimum
qualification each one of these key individuals must have.
[19.3]
The remainder of the columns required information relevant to
experience. What then follows is a note instructing the
tenderers to
submit a CV for each staff member nominated for a key personnel role.
A template then follows describing precisely
what must go into
the CV in order to demonstrate the number of years of relevant
experience. The template was contained in the
original RfT and
included by TCTA in the Rule 53 record that it filed. Proxa argues
that even though the final edition of the Form
2 Template in the RfT
that was made available to tenderers did not have the CV Template on
it, the objective importance of a CV
in order to evaluate relevant
experience cannot be seriously disputed
.
It further pointed
out that TCTA, TAC and BAC all alleged to recognise the importance of
a CV as they have all stated in their reports
that CVs were
considered when scoring key personnel on their experience (which
could not be true for Nafasi)
[20]
Proxa submitted that the relevant experience of key personnel
of each tenderer was absolutely material to the way in
which the
tenderers bids were evaluated and ultimately adjudicated, which
emphasised the importance of a CV when evaluating relevant
work
experience. It argued that without a CV there is no meaningful way of
distinguishing between work experience and relevant
work experience
which is required for the role that the person has been nominated
for. For that reason one must be able to
see from the CV not
only the experience the personnel has but “what part of that
experience is relevant to the specific key
personnel role to which
they have been nominated.”
[21]
Proxa points out that, with the disqualification of Nafasi, as a
result without any qualifying
tender, TCTA must then run a fresh
tender process with a view to find an appropriate tenderer who
properly qualifies for the tender.
That was accordingly the
motivation for the relief sought.
[22]
Proxa confirms that Nafasi completed the Form 2 template
but attached only certificates and qualifications of
all the
personnel nominated for the key roles but no CVs. It alleges that the
relevance or importance of Nafasi not attaching a
CV to be the
following:
[22.1]
The statement by TECs that “evaluation was done on the basis of
information provided in Form 2, submitted CVs
and copies of minimum
qualifications required” of all key personnel when scoring
functional points for experience is not
true, especially that they
considered the CVs, it may be true to all other tenderers but not
true as far as it relates to Nafasi.
[22.2]
The same goes with TATC’s Senior Manager in procurement who
identified the importance of CVs when he confirmed
under oath in his
affidavit that “CVs of all key personnel were considered when
bids were evaluated and scored. This
was not true in relation
to Nafasi as there were no CVs on its bid.
[23]
Proxa argued that from the consolidated score cards of all the
tenderers it is clear that both
TECs interrogated the CV of all the
key personnel. In some instances scored them down because although
they had the experience
their CVs did not demonstrate their
experience to be relevant to the role that they have been nominated.
TCTA therefore in
its various committees regarded the CVs of all the
tenderers, except Nafasi, to be material in the scoring in the second
phase.
[24]
It further argued that there is no rational basis for the TCTA nor
its TEC and BAC nor its Senior
Manager in procurement to conclude
that the people put forward by Nafasi had the relevant experience
that Nafasi claimed they had
without the CV. It alleged that it was
therefore entirely irrational for the TECs to allocate any points to
Nafasi for relevant
experience without seeing the CVs of Nafasi’s
key staff members.
Grounds
of Review
[25]
On that basis Proxa as a result raised the following grounds of
review:
25.1
TEC’s scoring of Nafasi on key personnel in the functional
evaluation without the CVs was irrational,
which irrationality raises
the ground of review under s 6 (2) (f) (ii) of PAJA.
[4]
[25.1.1]
Due to TEC’s irrational scoring of Nafasi, it was equally
irrational for the BAC to recommend Nafasi as a preferred tenderer
for both the Eastern and the Central Basin. The ultimate decision
taken to appoint Nafasi tainted by the same underlying problem of
irrationality. The inclusion of the CV was necessary for a rational
evaluation of their relevant experience.
[25.2]
Furthermore in the case of Nafasi where the CV was not attached a
relevant consideration was simply not taken into
account by either
the TEC or the BAC. Ultimately the decision to appoint Nafasi and
then to conclude a contract with it is tainted
by the fact that it
was recommended in circumstances where a relevant consideration was
not taken into account (which is the failure
to submit a CV or a
document of similar effect), which grounds a review articulated in s
6 (2) (e) (iii) of PAJA.
[5]
[25.3]
Thirdly the fact that TCTA through its various committees
interrogated the relevant experience of the staff members
in the
other bidders and failed to do so with Nafasi staff. Nafasi did not
attach the CVs and not a single committee raised this
as a problem
goes further than them merely giving Nafasi a preferential treatment.
Objectively this preferential treatment raises
a suspicion that TCTA
exercised a bias in favour of Nafasi which it alleges triggers the
ground for review that is under s 6 (2)
(a) (iii) of PAJA.
[6]
[26]
The basis upon which the review was raised was
basically on the failure by Nafasi to attach CVs.
TCTA
Response
[27]
TCTA’s response with regard to the B-BBEE certificate, is no
longer relevant as a result the
submission in relation thereto is not
considered further except later for the purposes of determining the
costs issue.
On
the CV issue
[28]
Proxa’s main contention on the CVs being a tender requirement
had however also become moot
as Proxa accepted that the RfT sent to
the tenderers did not include a requirement to furnish CVs, and also
the explanation by
TCTA that the RfT that was included in the Rule 53
record with Annexure 18 that referred to CVs being a requirement was
included
in error by a new employee.
[29]
On Proxa’s contention that a CV was nevertheless still
necessary for the Functional
evaluation or the scoring of the
key personnel on their experience in relation to their assigned role,
which it alleges was not
possible without it or information related
to what would normally be put in a CV being made available to TEC,
TCTA argued that
the relevant qualifications and experience of
Nafasi’s qualified personnel was evident from the documents
that were furnished
by Nafasi in respect of its bid for both
facilities.
It
refutes the allegation by Proxa that the RfT published in respect of
the Eastern and Central Basin necessitated bidders to attach
CVs of
their qualified personnel to the bids and none of the bidders
submitted a clarification in that regard.
[30]
TCTA pointed out that the note that appears under the published Form
2 Table of the RfT that was published
reads:
Notes:
1.
The individual’s qualification certificates shall be
submitted showing that they meet the minimum requirements
;
2.
The GMR appointment can be any of the nominated individuals
;
3.
No roles will be shared and points will be allocated for each
individual
.
[31]
TCTA argues that there is no basis to contend that TCTA should or
could have disqualified any
of the bidders on the failure to include
CVs in support of key personnel’s experiences submissions. Such
action could have
rendered the decision subject to a judicial review.
Also, details that could be included as part of a discrete CV could
be included
as part of the tender documents. Similarly, with some
members providing copies of reference letters of their track records.
[32]
Finally TCTA also referred to the grounds of disqualification that
were published in the RfT, the one relevant reads:
[32.1]
TCTA will disqualify any tenderer that fails:
[32.1.1]
To meet minimum B –BBEE required;
[32.1.2]
to meet the minimum functional valuation score;
[33]
TCTA went into detail explaining the assessment of the key personnel
using the criteria as indicated
in the RfT and showing how the points
were achieved whilst disputing the allegation by Proxa that the only
rational way this could
have been done was on the basis of a CV. It
argued that no substantiation shown for allegation that there might
have been a miscalculation
or incorrect scoring due to absence of CV
in relation to any specific personnel.
Dishonesty
Imputed on the part of TCTA
[34]
Regarding the allegation that TEC’s statement that they
considered the CVs of all key personnel
when scoring functional
points for experience to be false as no CVs were filed by Nafasi,
which accusation was levelled at TCTA’s
procurement Manager,
TCTA’s deponent to the Supplementary Affidavit points out that
he stated under oath that key personnel
experience was evaluated
based on the information provided in form 2, the CVs of the
individuals and copies of the minimum qualifications
required. If the
scores awarded to tenderers based on information included in Form 2
documents submitted by bidders, read with
the supporting
qualifications of personnel were sufficient to meet the minimum
qualifying score threshold in respect of personnel
experience, then
nothing more was required in respect of personnel key experience,
which is what happened with Nafasi.
[35]
TCTA denies that the inclusion of CVs for staff members nominated in
key personnel roles was necessary for a rational evaluation
of their
relevant experience and therefore denies that:
[35.1]
it was irrational of TEC to score Nafasi on key personnel in the
functional phase. Proxa failed in its view to explain
why the alleged
irrationality raises the ground of review in s 6 (2) (f) (ii) and
deny that it is apposite.
[35.2]
It was irrational of BAC to recommend Nafasi as the preferred
tenderer for both facilities. There is no underlying
problem that
taints the ultimate decision taken to appoint Nafasi or any decision
taken in the selection and appointment process.
[36]
TCTA further denies that a relevant consideration was not taken into
account by TEC or BAC and
disputes that s 6 (2) (f) (iii) is
relevant. The BAC condition was met.
[37]
It denies that any ground of review is as a result triggered.
Nafasi’s
response
On
the CV
[38]
Nafasi’s response was basically an assertion that it had
supplied substantively the information
required as every other
tenderer, and the information allowed by the RfT for a proper
consideration and scoring of its key personnel.
The information that
TCTA required having been expressly requested in Form 2 and not
required to be produced in a CV format. Also
that there is nowhere
were it says CV should be provided some special weight. It denies
Proxa’s imputation that the only
way TCTA could have evaluated
its personnel’s relevant experience and which is the way that
TCTA alleged to have done it,
was through the CVs of the key
personnel. There is also no evidence where TCTA has stated that it
had considered the CVs of all
tendering parties.
[39]
It denies any special preference or treatment afforded to it, that
being proven by the fact that
two of its key personnel were scored 0
and one other person scored down. Reference was had to CVs only where
a tenderer has failed
to provide the requisite information in the
format required by TCTA and instead submitted a CV. Also there is no
challenge that
it was wrongly scored.
[40]
It points out that Section 1 of the RtF is according to the
information to tenderers, the most
relevant portion of the document
to which this court should be directed. In the copy of Section 1 of
the published RfT in respect
of the Central Basin and the Eastern
basin, the note that appears under Form 2 of the published RfT, that
instructs tenderers to
submit CVs for each staff member that has been
appointed in key personnel roles does not appear.
[41]
Furthermore that in terms of the key personnel requirements the RfT
provides on Table 3, the
Functional Evaluation (“FE”)
criteria which sets out the parameters within which the experience of
the key personnel
roles will be scored and also provides a score
sheet. The FE Criteria requires tenderers to submit a completed Form
2 including
relevant qualifications for each of the personnel,
failing which the staff member will not be scored. The relevant
qualifications
referred to are specified in Form 2, which was to be
used to evaluate the tenderer’s submission. Form 2 in its
template form
specifies the relevant positions that must be filled
and sets out the minimum academic qualifications which must be
possessed and
read with the specified experience set out in FE
criteria. It requires the tenderers to particularise the years
of experience
under the years of experience column, that is:
[41.1]
The name and type of plant in which the key personnel held the
position;
[41.2]
The date the key personnel commenced and ended employment in the
position in the specified plant; and
[41.3]
The total years of experience that key person has at a particular
plant;
This
collectively forms the experience criteria.
[42]
The relevant parameters in the key personnel evaluation are that the
key personnel has:
(i) the correct academic
qualification;
(ii) held the
relevant position at another plant;
(iii)
specifies the particulars of experience in the relevant position, by
completing the experience criteria.
(Collectively
referred to as the “evaluation requirements”)
[43]
Nafasi argued that there is no basis for Proxa to impute that the CV
was also a requirement and
it was to be submitted for purposes of key
personnel evaluation. Proxa’s contention arises from
documents which were
not part of the final RfT and was never relevant
to the tender. The information required by TCTA was to allow it
to be able
to easily identify relevant experience and assess and
score the parties on those asis.
[44]
Nafasi also disputes Proxa’s allegation that
without a CV no meaningful key personnel evaluation or
assessment
between work experience and relevant experience could take place. The
only rational way would be through a CV. It argued
that If relevant
work experience can be listed in a CV, it can also be listed (The
question is whether the relevant experience
or qualifications has
been listed, albeit) in a different document).
B-BBEE
Certificate
[45]
This was no longer part of the dispute between the parties, as Proxa
abandoned its reliance on
s 6 (2) (b) and s 6 (2) (e) (ii) of PAJA.
Proxa’s
standing
[46]
In addition Nafasi raised the issue of Proxa’s standing
contending that since Proxa admitted
or conceded that it was validly
disqualified from the bid process at the functional phase stage and
since it alleged to be litigating
on its own interest standing,
having a commercial interest, it therefore does not have an interest
in what happened at Envelope
B stage, that is on the 2
nd
phase. Only those who participated in that phase have an own interest
standing to challenge the decision taken or outcome. Proxa
therefore
lacks any standing.
Grounds
of review
[47]
On Proxa’s first ground of review based on
the allegation that Nafasi’s tender bid and decision
made was
irrational grounding a review on s 6 (2) (f) (ii), since Nafasi had
not attached its key personnel’s CV to its Functional
Evaluation Form, making it irrational of TEC to score Nafasi and BAC
to recommend Nafasi as the preferred bidder. Nafasi disputes
that the
allegation has merit, since it submitted the required information in
the required format, adequate to enable both the
TEC and BAC to make
a decision.
[48]
On Proxa’s second ground of review based on s 6 (2) (e) (ii)
that TEC valuated and BAC
scored Nafasi without having considered the
CVs of Nafasi’s key personnel, therefore the decision made
without taking a relevant
consideration into account, Nafasi argued
that there is no merit to that conclusion as a CV was not a
requirement or the only relevant
consideration or document from which
the information required was sourced.
[49]
On the third ground of review based on an alleged
reasonable suspicion of TCTA having exercised biased in
favour of
Nafasi invoking s 6 (2) (e) (iii) of PAJA. Nafasi disputes the merit
of that ground pointing out that it is premised
on a wrong assumption
that TCTA was required to interrogate CVs when they were actually not
required. Nafasi submitted fully all
the information requested in
Form 2 which was the compliant form. The CVs submitted by the other
tenderers were considered where
the information required was not
fully furnished in that Form 2 or not completed properly. It
therefore denied that there was any
question of material biased or
for any reasonable apprehension of bias nor of preferential
treatment, as its tender was critically
assessed and scored
accordingly.
Proxa’s
Reply
[50]
Proxa conceded that due to similar reasons mentioned in the
Respondent’s Answering Affidavits
the scope of its application
had narrowed. It confirmed that it was no longer challenging its
disqualification or that of the other
tenderers. However, since it
seems Nafasi became the last man standing and by default became the
preferred bidder, its case, finally
is on the ground that Nafasi was
also supposed to be disqualified.
[51]
Proxa confirmed that Nafasi was supposed to be disqualified not
because it was required and did
not furnish CVs of its key personnel
(which was previously its main contention) but because there was no
rational basis upon which
TCTA could have scored Nafasi’s bid
in relation to its key personnel’s relevant experience at least
without the CVs
or any supplementary information in respect thereto.
It therefore was not ignoring that the RfT did not contain a
requirement that
CVs be attached to bid submissions. It submitted
that nonetheless, the scant information Nafasi provided in its Form 2
was simply
not enough. The relevant experience of its key personnel’
was not adequately described. Therefore, without a CV to amplify
the
scant information provided in Form 2 there was no rational basis upon
which Nafasi’s bid could have been scored. In other
words there
was no rational connection between the information provided and the
scores given.
[52]
It argued that the details that were required in Form 2 could not
have been sufficient to provide
TCTA with enough information upon
which to score a tenderer in the manner contemplated by table 3. It
alleges every tenderer to
have recognised that and submitted a CV,
except Nafasi. However, if a tenderer was astute enough to provide
full details of its
key personnel‘s relevant experience in the
space provided for in Form 2 then CVs would not need to be attached.
Its challenge
is therefore that without CVs Nafasi could not and
should not have received the points for the relevant experience of
its key personnel
.
[53]
It also indicated to no longer rely on the CV being a requirement but
place requirement on the
basis of the instruction that the tender bid
shall be made by the tenderer completing and returning the schedule
of returnable
documents including any other documents prepared by the
tenderer to supplement the required returnable documents and
schedules.
It however argues that on that basis the CVs remained
important, albeit not compulsory.
[54]
It persisted in its argument that the limited information required by
Form 2 on the key personnel
experience could not have been sufficient
to Nafasi’s tender to enable TCTA to assess those candidates’
relevant experience.
The relevance of the experience held by a
nominated responsible employee is to be determined by the scoring
criteria in Table 3.
Each tenderer if it was to be allocated a score
in relation to any key personnel had to provide enough details about
their candidate’s
previous experience so as to enable TCTA to
determine if they have met the functional evaluation criteria in
Table A. Whether they
chose to do so in a document they called a CV
or whether they chose to do so by attaching some documents possibly
letters of appointment
or contracts of employment detailing the core
functions that their nominated key personnel performed at the
applicable plants matters
not.
[55]
It further argued that the relevant information had to be placed
before the TCTA in a document
to supplement Form 2. Which all
tenderers did, except for Nafasi. Had TCTA scored Nafasi
according to Table 3 of section
1 of the RfT, Nafasi would not have
received points for its key personnel. This should have led to the
disqualification of Nafasi
from further adjudication, eliminated for
not receiving 40 points out of a possible 60.
[56]
On the personnel that had been assessed Proxa
criticises the scoring made in the instant of Mr Hutton whom
Nafasi
purported to demonstrate that he had experience in the operations and
management of Activated Sludge, HDS Plant or Water
Treatment plant
whereupon scoring depended on two separate criteria:
1.
Experience on an Activated Sludge, HDS or Water Treatment Plants;
2.
The experience should be on operating and managing the Plant;
[57]
It is argued by Proxa that in the Form 2 in relation to both
facilities Nafasi told TCTA that
Hutton who is an engineer worked at
4 different Water Treatment Plants and HDS Plants. However, nowhere
in the Form is it indicated
what he did at those plants, whether he
operated or managed the Plants or did anything related to that. From
Form 2 he could only
be allocated points if it is known what he did
at the plants. He should therefore not have been allocated any score.
The score
that was granted for his experience bears no rational basis
to the information that was furnished when measured against the
Functional
Evaluation criteria used for scoring in Table 3. Proxa
accepts that there was no space and argues that Nafasi should then
have
furnished the information in a CV or similar document as a
supplement to Form 2.
[58]
In respect of Mr Bailie, it is indicated that he
worked at two HDS and Water Treatment Plants. It is also
not
mentioned anywhere as to what he did at those plants in terms of
operations as the terms of requirement included an indication
of his
experience in operating the plants. The score that he was allocated
bear no relevance to the information provided when measured
against
the Functional Evaluation criteria used for scoring in Table 3. Also
even if accepted that there was no space in Form 2
to provide for the
type of information, it should have been provided in a CV or similar
document to supplement the information
on Form 2.
[59]
TCTA’s statement that Baillie also has experience in Kayalekera
Uranium Sulphuric Acidic
Mine Drainage Plant which it corrects to be
Kayalekera Uranium Sulphuric Acid Plant (not AMD), a chemical
production Plant. It
states that in the absence of supplementary
information about the nature of the Plant and Baillie’s role at
the plant there
was no rational basis for TCTA to conclude that the
experience was relevant.
[60]
Reference is also made to Ms Mushonga who is a Chemical Engineer. In
the Form 2 submission TCTA
is told that she worked at the Water
Treatment Plant and HDS but with no explanation or description of
what she did there or her
position in the Form 2. She is required to
be in operations. TCTA was without this information and therefore
should not have allocated
her any points. Proxa alleges that the
score that TCTA allocated to her bore no rational connection to the
information provided
when measured against the functional evaluation
criteria used for scoring in Table 3. It could have been provided on
a CV or similar
document.
[61]
Reference is also made to Mr Botes who is a
Chemical Engineer was supposed to have experience in managing
the HDS
and WTP plants. It is alleged that nothing on Form 2 is said to
indicate if he was managing the plants although it is said
he had
worked at 5 of those two plants. No information is given on the role
he played at the plants.
[62]
In relation to Ndobe’s information with
regard to his experience on maintaining the process at Activated
Sledge HDS and Water Treatment Plant was also required to be able to
score him. The Form 2 only shows that he worked at one
Water
Treatment Plant with no explanation as to what he did there. He
should not have been scored without the information. The
score
therefore that TCTA gave Nafasi for Ndobe bore no rational connection
to the information provided when measured against the
functional
evaluation criteria used for scoring in Table 3. Ndobe was scored
differently to Bailie who also had experience of working
at a
chemical production plant. This was regarded as irrelevant but he was
awarded points for the 12 years instead of 15 when Bailie
was scored
for the 11 years. No information indicate why one was awarded points
instead of the other.
[63]
Overall Proxa disputed the sufficiency of the information submitted
by Nafasi as it failed to
indicate the role each key personnel played
at the relevant places where they worked. It argued that more was
needed from Nafasi
to supplement the information before TCTA could
allocate the points it ultimately did. Proxa therefore disputes
Nafasi’s
allegation that information provided was sufficient
for Nafasi to score 40 points out of the possible 60 allowing it to
advance
to the next stage. It was insufficient to do so. The lack of
information rendered TCTA’s decision to allocate Nafasi any
points irrational. It alleged that TCTA had allocated points to
Nafasi in circumstances where its decision to do so cannot be
rationally
connected to any document that served before it.
Proxa’s
locus standi
[64]
On Nafasi argument that since Proxa was litigating
on the basis of its own, personal commercial interest
and has been
disqualified, it lacks standing. It had no interest to what happens
in the second envelope. Proxa’s response
is that the mere fact
that it was disqualified at an early stage is not an impediment to
its own interest standing. Especially
because it is challenging the
qualification of Nafasi on the same phase, the envelope A process
saying that everybody was supposed
to be disqualified including
Nafasi.
[65]
It further submits on the own interest standing that, in terms of s
38 of the Constitution the
court’s approach on the issue of
standing on PAJA reviews, take into consideration that the purpose of
such reviews is to
protect the constitutional right to just
admnistrative action in s 33 of the Bill of rights. TCTA as an organ
of state is to act
in an open, transparent and accountable manner. It
also entitles the member of the public to act in a responsible
manner. The fact
that as a member of the public it has scrutinized
the conduct of TCTA were it was forced to explain cannot be wrong. It
denied
Nefasi’s accusation that the review was vexatious.
Issues
to be determined.
(a)
Whether the Applicant has any
standing
to bring this
Application on an own interest capacity, notwithstanding being
validly disqualified during the 2
nd
phase.
(b)
Failing an own interest, if he has
standi
ng on a public
interest capacity this being a public interest issue; if found that
he has, then
(c)
Whether the decision that was made is reviewable on the basis of:
(i)
being irrational in that there was no information before the
TCTA
that justified the decision made; s 6 (2) (f) (ii); which means the
decision could not have been taken with the information
that was
before the TCTA (in that Nafasi was supposed to supplement its
information; compliance with RfT on Form 2 not being sufficient).
(d)
If reviewable, the correct remedy.
Legal
framework
On
Proxa’s standing (own interest).
[66]
In enunciating on the point of own interest
standing
Chaskalson
P in
Ferreira
vs. Levin N.O
.
[7]
at
para 165 stated the following:
“
I
can see no good reason for adopting a narrow approach to the issue of
standing in constitutional cases. On the contrary, it is
my view that
we should rather adopt a broader approach to standing. This would be
consistent with the mandate given to this court
to uphold the
Constitution and would serve to ensure that constitutional rights
enjoy the full measure of the protection to which
they are entitled.”
[67]
It was further in
Ferreira
v Levin NO and Others
[8]
stated
that “
It
is sufficient for the accused to show that he or she is directly
affected by the unconstitutional legislation. If
this is
shown "...it matters not whether he is the victim."
The
impact of
Ferreira
to
own interest standing is said to have been emphasised in
Giant
Concerts CC vs. Rinaldo Investments (Pty) Ltd
[9]
where, in para 41, the Constitutional Court summarised the following
general principles concerning own-interest standing:
“
33.1.
To establish own-interest standing under the Constitution, the
applicant need not show the same “sufficient, personal
and
direct interest” that the common law requires. The applicant
must, however, show that the contested law or decision affects
its
rights or interests,
or
potentially affects them
.
33.2.
This requirement must be generously and broadly interpreted to
accord with constitutional goals
.
33.3.
The interest must, however, be real and not merely hypothetical or
academic.
33.4.
Standing is not a technical or strictly defined concept, and there is
no magical formula for conferring it. It is a tool that
a court must
employ to determine whether a litigant is entitled to claim the
court’s time, and to put the opposing litigants
to trouble.
33.5.
Each case depends on its own facts and there is no general rule
covering all cases. In each case, an applicant must show that
he or
she has the necessary interest in an infringement or a threatened
infringement. Here a measure of pragmatism is needed.”
(My
emphasis)
[68]
In
WDR
Earthmoving Enterprises vs. Joe Gqabi District Municipality
2018
[10]
a distinction is drawn between namely disqualified tenderers who may
lack standing to challenge a final award unless their challenge,
if
successful, results in the need for a brand-new process to be
commenced afresh. In that instance standing is confirmed.
[69]
These being the authorities that have been
referred to by Proxa in its heads of argument. The crux of the
matter
is that Proxa and other tenderers that were disqualified in the
functional evaluation are not challenging their disqualification
and
the other disqualified tenderers are not involved in the litigation.
Nafasi had argued that Proxa’s disqualification
will not change
Proxa’s situation. Proxa had correctly argued that its
circumstances will change if the relief it is seeking,
which is the
rerun of the tender is granted, as it will get another chance to bid
for the tender as enunciated in WDR.
## [70]
InWDR
Earthmoving Enterprises supra[11]the
esteemed court stated in respect of the own interest standing the
following:
[70]
In
WDR
Earthmoving Enterprises supra
[11]
the
esteemed court stated in respect of the own interest standing the
following:
“
As
regards the issue of standing, the full court held that the
appellants had no standing to challenge the award of the tender to
the fourth respondent because:'. . . once its bid was found to be
non-responsive, it fell out of the race and it no longer had
a
legally protected interest in the outcome of the process. As Pillay J
stated in Rodpaul Construction CC t/a Rods Construction
v
Ethekwini Municipality & others [2014 JDR 1122 (KZD)] "only
a compliant tenderer acquires the right to challenge
an award."'
[71]
The full court in WDR had then rejected the argument that the
appellants’ standing to challenge
the award to the fourth
respondent arose from s 6(1) of the Promotion of Administrative
Justice Act 3 of 2000 (the PAJA) which
provides that 'any person may
institute proceedings in a court . . . for the judicial review of an
administrative action.’
[72]
The Constitutional Court found the full court to have erred in
concluding that the standing of the
appellants to challenge the award
of the tender, was determined by the finding that the appellants’
bid was non-responsive.
Further that its reliance on
Rodpaul
Construction CC v Ethekweni Municipality
2014 JDR 1122 (KZD)
was misplaced. The statement in
Rodpaul,
at para 52,
that the full court followed, was that:
'.
. . only a compliant tenderer acquires the right to challenge an
award. At best a non-compliant tenderer may appeal to the authority
before expiry of the tender notice to waive strict compliance.'
It
is too broadly cast and does not correctly reflect Canadian law, from
which it was said to be derived.”
[73]
In any case both Respondents TCTA and Nafasi did not address the
issue of own interest standing
in their heads of argument nor in
their oral submissions. I would therefore assume that reference to
the abovementioned authorities
had persuaded them otherwise. The own
interest standing of Proxa no longer regarded to be in issue.
Whether
the decision that was made qualifying Nafasi in the functional
criteria is reviewable on the basis of s 6 (2) (f) (ii),
it
being irrational in that there was no information before the TCTA
that justified the decision,
which means the decision could not
have been taken with the information that was before the TCTA.
Legal
framework
[74]
In
Potgieter v Howie NO and Others
[2013] ZAGPPHC 313;
2014
(3) SA 336
(GP), para 20 the following was stated:
“
A
rationality review is based on an absence of rationality between the
information before decision maker and which he relied on
to form the
basis of its decision. It does not refer to the rational connection
between reasons given and the decisions but rather
the information
upon which the decision is based.”
[75]
In
Chairman
of the State Tender Board v Digital Voice Processing (Pty) Ltd;
Chairman of the State Tender Board v Sneller Digital (Pty)
Ltd &
Others,
[12]
the
court also emphasised that in order to be rational, a decision must
be based on accurate findings of fact and a correct application
of
the law. Whilst in
Pharmaceutical
Manufacturers
[13]
this
Court stated that:
“
Rationality
in this sense is a minimum threshold requirement applicable to the
exercise of all public power by members of the executive
and other
functionaries. Action that fails to pass this threshold is
inconsistent with the requirements of our Constitution, and
therefore
unlawful.”
The
setting of this standard does not mean that the courts can or should
substitute their opinions as to what is appropriate, for
the opinions
of those in whom the power has been vested. As long as the purpose
sought to be achieved by the exercise of public
power is within the
authority of the functionary, and as long as the functionary’s
decision, viewed objectively, is rational,
a court cannot interfere
with the decision simply because it disagrees with it, or considers
that the power was exercised inappropriately”
[76]
What the Constitution requires is that public power vested in the
executive and other functionaries
be exercised in an objectively
rational manner. It was held in a different context in
Prinsloo
v Van der Linde & Another
[14]
at
para 36 that “[a]s long as there is a rational relationship
between the method and object it is irrelevant that the object
could
have been achieved in a different way.” It is further expounded
in the Judgment that:
“
The
question of whether the legislation could have been tailored in a
different and more acceptable way is relevant to the issue
of
justification, but irrelevant to the question of whether there is a
sufficient relationship between the means chosen and the
end sought,
for purposes of the present enquiry
[15]
.
In
regard to the first misconception, a person seeking to impugn the
constitutionality of a legislative classification cannot simply
rely
on the fact that the state objective could have been achieved in a
better way. As long as there is a rational relationship
between
the method and object it is irrelevant that the object could have
been achieved in a different way.”
[77]
Our
courts have confirmed that the exercise of public power entails
rational decisions related to the purpose for which the power
was
given. In
Pharmaceutical
[16]
the court held that:
“
It
is a requirement of the rule of law that the exercise of public power
by the executive and other functionaries should not be
arbitrary.
Decisions must be rationally related to the purpose for which the
power was given, otherwise they are arbitrary
and inconsistent in
effect with this requirement. It follows that in order to pass
constitutional scrutiny the exercise of public
power by the executive
and other functionaries must, at least comply with this
requirement.107 If it does not, it falls short of
the standards
demanded by our Constitution for such action.
[
86]
The question whether a decision is rationally related to the purpose
for which the power was given calls for an objective enquiry.
Otherwise a decision that, viewed objectively, is in fact irrational,
might pass muster simply because the person who took it and
mistakenly in good faith believed it to be rational. Such a
conclusion would place form above substance and undermine an
important
constitutional principle.
[78]
Section 217 (1) of the Constitution states that when an organ of
state in the national, provincial,
or local sphere of government, or
any other institution identified in national legislation, contracts
for goods or services, it
must do so in accordance with a system
which is fair, equitable, transparent, competitive, and
cost-effective.
[17]
[79]
Section 51(1)(a)(iii) of the PFMA sets out the principles that must
be adhered to, to achieve
a legitimate procurement process:
“
an
accounting authority for a public entity must ensure and maintain “an
appropriate procurement and provisioning system which
is fair,
equitable, transparent, competitive and cost-effective”
[80]
In terms of Section 217(3) of the Constitution the national
legislation is to provide a framework
for preferential procurement.
That national legislation is the PPPFA; it is only within this
framework that organs of State may
undertake preferential
procurement
[18]
. The PPPFA
requires an establishment of a procurement policy and a tender
procedure to be followed for the procurement of goods
and
services.
[19]
[81]
A points-based system is prescribed by the PPPFA, with some
exception,
[20]
. Section
2(1)(f) of the PPPFA provides that a contract must be awarded to the
tenderer who scores the highest points. That tenderer
must, in
accordance with section 2(1)(b) and (c) have submitted an “acceptable
tender” which is defined, by section
1, as “one that ‘in
all respects complies with the specifications and conditions of
tender as set out in the tender
document.
Analysis
[82]
The contested information required on the relevant experience of key
personnel was apparently
according to Proxa supposed to be furnished
in the form of a CV to supplement the information requested in RfT’s
Form 2,
as it allegedly did not adequately address the purpose for
which the information was required. The practical example given by
Proxa
although belatedly in the Replying Affidavit was the fact that
the information does not say anything on the type of experience the
key personnel had in relation to the position they will be occupying
in terms of the new contracts. All the other tenderers furnished
that
information in a form of a CV although not a specified RfT
requirement. Proxa insists that the ‘relevant’ experience
could not be outlined sufficiently in Form 2, and for the purpose of
scoring Nafasi in the manner contemplated by Table 3 in section
1 of
the RfTs. It therefore argued that there was no rational connection
between the information furnished by Nafasi and the scores
given by
TCTA.
[83]
The contention that arises from these facts is whether it was indeed
not possible for TCTA to
establish the required facts from the
information submitted by Nafasi, so as to be scored properly and
assess the extent to which
Nafasi met the functionality criteria,
without a CV, notwithstanding the Nafasi’s acceptable or
compliant tender.
[84]
Section 1 of RfT Information to Tenderers is the most relevant
document which clearly stipulates
the conditions of tender. Under
Point 4 on Submitting a tender offer its stated that: The tenderer is
required to complete in full
the Returnable Schedule and the Bill of
Quantities and attach all relevant documents in order for his tender
to be responsive.
The Original and a copy of the tender documents
shall be duly completed and signed.
[85]
The tender offer shall be made by the tenderer completing and
submitting a schedule of returnable
documents and schedules
including:
(a)
Any other documents prepared by the tenderer to supplement the
required returnable documents; and
(b)
copies of receipt slips for addenda.
[86]
On 5 Submissions –the following documents must be filled in and
submitted as part of compliance
documents. Under Table 1, that is
Envelope A, Functional proposal. On Section 4 Appendix 5: Complete
Forms and
supply relevant certificates in respect of
qualifications of the Personnel to operate the plant, the documents
compulsory
.
Appendix
6 - on Functional evaluation forms- Completion of Form, a compulsory
document.
[87]
Item 6. Grounds for disqualification: - TCTA will disqualify tenderer
that fails to meet:
1.
the minimum criteria;
2.
functional evaluation score;
3.
Fails to submit form of offer, schedule of rates and prices;
4.
Failure to submit the returnable documents within seven days;
7.1 on Functionality
evaluation it states that:
“
Tenders
will be evaluated in terms of the functional evaluation criteria
table below. The tenderer must score a minimum of 60 points
(out of a
100 points) for functional criteria to qualify for further evaluation
on price and B- BBEE status level contribution”
[88]
Table 3
: on Functional evaluation criteria under Form 2,
Section 2 on Personnel key experience reads:
“
Tenderer
shall include completed form (Form 2)
including
relevant qualification
for
each of the personnel, failing which the staff member will not be
scored
.”
1.
Responsible Manager
:
Experience in the management and operation of Activated sludge, HDH
Plants or Water Treatment plants (WTP).
4
points for the first five years and thereafter 1 point for each year
up to
maximum of 15 points.
(GMR
1.2 Refer to note below)
2.
Operational Manager
:
Experience in operating HDS or WT plants,
5
points for the first 5 years thereafter 1 point for each year up to a
maximum of 13 years.
(GMR 1.2 Refer to note
below)
3.
Class 5 Operator
:
Experience of operating activated sludge, HDS OR WT plants,
3
points for the first 5 years and thereafter 1 point for each year to
a maximum of 14 points.
4.
Maintenance Manager
: Experience of maintaining activated
sludge, HDS and WT plants
5
years from the first 5 years thereafter 1 point for each year for the
maximum of 14 points. (GMR 1.2 refer to note below)
5.
Process Engineer
: Experience of
managing process of HDS or WT plants.
3
points for the first 5 years thereafter 1 point for each year up to
maximum of 6 points. (GMR 1.2 refer to note below)
6.
Process Technician:
Experience of maintaining the
process at activated sludge, HD or WT plants
3
points for the first five years thereafter 1 point for each year to a
maximum of 6 points. (GMR 1.2 refer to note below)
GMR
2.1 is a requirement and any of the site based management personnel
(i.e Responsible Manager, Operational or Maintenance Manager)
shall
show proof of accreditation. A maximum of 60 points.
[89]
Notes thereafter read:
1.
The individual qualifications certificate shall be submitted
showing that they meet the minimum requirements
.
2.
The GMR appointment can be any of the nominated individuals.
3.
No roles will be shared and points will be allocated for each
individual.
[90]
Where after the tenderer had to score a minimum of 60 out of 100
points (40 of which were available
to be scored in relation to the
company experience and the remainder in relation to the key personnel
experience)
[91]
It is clear that Form 2 stipulates the minimum information that was
required from the tenderers,
and the returnable compulsory documents
as far as the information on the relevant experience and
qualifications of the key personnel
was concerned. The document
required the tenderers in relation to experience to indicate the name
and nature of the plant, that
is Water Treatment, High Density or
Activated Sludge plant, the number of years of experience operating
at the relevant plants,
that is the start and end date or if
involvement ongoing. Furthermore, on the qualifications to attach the
relevant certificates,
as proof of meeting the minimum requirement.
Accreditations also if applicable. That is exactly the information
supplied by Nafasi
and the basis upon which Nafasi, Proxa and all
other tenderers were scored. Nafasi obtained the required points,
ascertainable
and justifiable from the information and documentation
it supplied.
[92]
The tenderers were allocated points for the minimum qualifications
required for their roles,
established from the relevant information
supplied in form 2 and equally relevant qualification certificates
submitted. In the
Form, it is clearly stated that for the personnel
functional evaluation the submission of relevant certificates is
compulsory and
without the certificates the personnel were not to be
scored. The tenderers were then allocated points for the key
personnel’s
years of experience at the related plants
calculated in terms of the formula indicated on Table 3 Section 2 on
key personnel experience.
The addition of the CV is not mentioned but
was nevertheless, to the advantage of those who did submit it also
considered to determine
if the personnel met the minimum requirements
and had the relevant experience to be scored accordingly. It however
did not mean
that without the CV the tenderers could not be scored.
[93]
The fact is that in accordance to what was required in terms of the
RfT template and the Form
2 specifications also as per conditions of
RfT, Nafasi had complied by submitting an acceptable tender as in
terms of s 1 of the
PPPFA. It therefore could not be disqualified on
the basis that it had failed to furnish or supplement the requisite
information
in terms of the template, unless if it was indicated
therein to be a tender specification. It is also not Proxa’s
complaint
that Nafasi did not comply. As a result, it would then be
absurd to conclude that due to Nafasi not submitting CVs, there was
no
sufficient information from which points could have been
accordingly allocated and a decision made in relation to Nafasi’s
qualification.
[94]
Proxa was therefore wrong to still impute that Nafasi should have
been disqualified for insufficient
information since it did not
furnish any CVs, further that it had resulted in an irrational
decision by TCTA qualifying Nafasi
in the functionality evaluation.
It was not part of the RfT specification or the listed reason for
which a tenderer could be disqualified.
Proxa also disputed that
Nafasi’s key personnel functionality assessment could take
place without the CVs based on the fact
that all tenderers submitted
CVs which were in all the tenderers instance considered by TCTA in
their scoring, except for Nafasi.
However Nafasi’s tender was
compliant in that it was an acceptable tender as per specifications
of the RfT. The contention
that without the CVs a proper assessment
could not take place has no substance. It does not matter in whatever
angle the argument
is presented. The information submitted as per
Nafasi’s acceptable tender was relevant for the purpose for
which it was required,
that is to assess the extent to which Nafasi
met the functionality minimum requirement. TCTA factually assessed
and accordingly
scored Nafasi. The decision to qualify Nafasi was
borne by the facts and therefore not irrational.
[95]
Furthermore, considering what goes on to the CV, the mentioning
therein of a position held or
experience and qualifications obtained
is of minimal value without attaching the collateral documentary
proof of certificates,
accreditation, reference letter, which carries
more weight. The further contention that the decision to award the
tender to Nafasi
was not rationally connected to the information that
was before TCTA is baseless.
[96]
The other contention raised by Proxa albeit
belatedly in its Replying Affidavit to the Respondent’s
Further
Supplementary Answering Affidavit was in relation to the basis upon
which the key personnel were scored and points allocated,
which is
also without merit. As pointed out by TCTA there was no clarity
sought about the process to be followed, information
to be submitted
or on point scoring or allocation during the briefings. TCTA followed
the processes and the legislation in place
to assess compliance and
functionality in order to accordingly score the tenderers. None of
the tenderers who had advanced to that
category, most of whom were
then disqualified, complained about the process followed or their or
Nafasi’s qualification.
It was only Proxa who complained,
initially about its own disqualification, then Nafasi’s alleged
non-compliance due to failure
to submit CVs, then challenging the
adequacy of the information that was before TCTA’s TEC for a
proper assessment of Nafasi
without CVs and finally disputing
Nafasi’s scoring.
[97]
It is a fact that according to the Form 2 Template they were going to
be scored according to
the years of experience that they would have
been working at the named or similar plants. There were no points
granted for the
capacity in which the key personnel were employed at
that time unless if it was at the relevant plants. The focus was more
on the
qualifications if they are consistent with the requirements
for the appointed role and on the years working at the relevant
plants.
Points were added for the capacity in which personnel was
employed at the relevant plant if mentioned. TCTA consequently made a
decision on Nafasi based on what was before it at the time and could
be justified. Such a process follows or conforms to the purpose
of
the tender. The fact that the surplus information provided by some of
the tenderers or information submitted in a different
format was also
considered does not mean the minimum requirements as per the RfT were
inadequate, such that they would not have
been able to make the
required decision. The criteria remained the same, hence it was
possible to balance the scoring and decide
on the qualification even
of those who supplemented or deviated.
[98]
Proxa also alleges that what Nafasi was scored could not be
justified. In other words, even though
Nafasi’s was an
acceptable tender legally, there is no way it could have scored the
points allocated based on the information
submitted in that tender,
as it was insufficient. It therefore disputes that Nafasi obtained
the points allocated to reach the
minimum requirement on
functionality, raising the point unfairly in the Replying Affidavit.
## [99]
It is important to point out that, it is not for this court at the
time of review to re-determine
the policy applied and or processes
followed by the decision maker as it was confirmed inSouth
African National Road Agency Ltd v The Toll Collect Consortium and
Another[21]with
the court stating that, in such instances:
[99]
It is important to point out that, it is not for this court at the
time of review to re-determine
the policy applied and or processes
followed by the decision maker as it was confirmed in
South
African National Road Agency Ltd v The Toll Collect Consortium and
Another
[21]
with
the court stating that, in such instances:
“
[27]
The invitation to re-score the Consortium’s tender for quality
must be declined. Once again it must be stressed that
this is not the
function of a court. The task of evaluating and awarding these
tenders rested in the hands of SANRAL, not the court,
and its
decision must be respected, provided it was arrived at in accordance
with the constitutional requirements applicable to
public procurement
as set out in s 217 of the Constitution, any applicable
legislation and the terms of the tender. The court
could only
interfere if the process was infected with illegality. The court will
not hesitate to interfere with the award of a
tender where there is
impropriety or corruption. However, where the complaints merely go to
the result of the evaluation of the
tender a court will be reluctant
to intervene and substitute its judgment for that of the evaluator.
It may not interfere merely
because the tender could have been
clearer or more explicit. Nor will it interfere because it disagrees
with the assessment of
the evaluator as to the relative importance of
different factors and the weight to be attached to them. The court is
only concerned
with the legality of the tender process and not with
its outcome”.
[100]
In
Erf
16 Bryntirion (Pty) Ltd v Minister of Public Works,
[22]
it
was correctly pronounced by this court that the circumstances upon
which a statute or conduct will be correctly characterised
as
irrational are extremely narrow. This was said with reference to what
the Constitutional Court recently stated that:
“
As
this court observed in
Pharmaceutical
Manufacturers,
a court cannot interfere with legislation simply because it disagrees
with its purpose or believes that it should
be achieved in a
different way. Unless it can be shown that the objective is
arbitrary, capricious or manifests naked preferences,
‘it is
irrelevant to this inquiry whether the scheme chosen by the
legislature could be improved in one respect or
another’.’-
[23]
Because
of the difficulty of establishing irrationality, the vast majority of
attempts to impugn statutes for irrationality have
failed.”
[24]
[101]
In turn, the court considered that it cannot investigate the policy
frameworks or motives of the legislative bodies,
but should rather
stick to the examination of the rationality of the legislation
itself.
[102]
In
Bato Star Fishing (Pty) Ltd v Minister of
Environmental Affairs and Tourism and Others,
the
court also cautioned on imposing on the terrain of admnistrative
agencies stating the following:
“
In
treating the decisions of administrative agencies with the
appropriate respect, a court is recognising the proper role of the
executive within the Constitution. In doing so a court should be
careful not to attribute to itself superior wisdom in relation
to
matters entrusted to other branches of government. A court should
thus give due weight to findings of fact and policy decisions
made by
those with special expertise and experience in the field. The extent
to which a court should give weight to these considerations
will
depend upon the character of the decision itself, as well as on the
identity of the decision-maker. A decision that requires
an
equilibrium to be struck between a range of competing interests or
considerations and which is to be taken by a person
or
institution with specific expertise in that area must be shown
respect by the courts. Often a power will identify a goal to
be
achieved, but will not dictate which route should be followed to
achieve that goal. In such
circumstances
a court should pay due respect to the route selected by the
decision-maker. This does not mean however that where
the decision is
one which will not reasonably result in the achievement of the goal,
or which is not reasonably supported on the
facts or not reasonable
in the light of the reasons given for it, a court may not review that
decision. A court should not rubber-stamp
an unreasonable decision
simply because of the complexity of the decision or the identity of
the decision-maker.
[25]
[103]
Finally in the
Pharmaceuticals
Manufacturers
case
[26]
supra, it was pointed out that rationality as a minimum requirement
for the exercise of public power,
“
does
not mean that the courts can or should substitute their opinions as
to what is appropriate, for the opinions of those in whom
the power
has been vested. As long as the purpose sought to be achieved
by the exercise of public power is within the authority
of the
functionary, and as long as the functionary’s decision, viewed
objectively, is rational, a court cannot interfere
with the decision
simply because it disagrees with it or considers that the power was
exercised inappropriately.”
[104]
In my view Proxa has failed to make a case for the court’s
interference with the decision made relief sought.
Costs
[105]
Part of the costs that were incurred in Part A, in the Urgent
Application were still to be determined. On withdrawal
of the
Application Proxa tendered costs only from the date of Basson J
order, that is 21 January 2021 to the date of withdrawal
of the
Application on 3 February 2021. Basson J had deferred the decision on
the costs occasioned by the postponement to when the
Application is
heard.
[106]
Proxa contends that It approached the court on an urgent basis to
compel TCTA to furnish it with certain information,
and had it not
been TCTA’s refusal to accede to the requests for the
information, there would not have been any need to approach
the court
on an urgent basis. As and when it ultimately received the
information from TCTA it made a decision based solely on the
information provided, not to pursue the dispute for the interim
relief, only in respect of the Eastern Basin and instead proceeded
with a review. It is therefore Proxa’s submission that TCTA is
liable for the costs incurred until the point when it was
furnished
with the information it requested.
[107]
TCTA is seeking costs including those occasioned by the employment of
two counsels on a punitive scale (that is
on an attorney and client
scale). TCTA’s demand is based on the fact that Proxa has
changed the course of its litigation
significantly, beyond the
acceptable or reasonable bounds of a Rule 53 review Application. It
had persisted on the review notwithstanding
acknowledging that it and
other bidders had been properly disqualified. Its accusation of bias
against TCTA unfounded.
[108]
In reply Proxa denies that it ever contended that it was improperly
disqualified but instead allege that it was
aware that it was
disqualified and had kept on asking TCTA for reasons why it was
disqualified which were not forthcoming, but
consistently refused.
This is however not borne by the documents filed that indicate on
Part A that Proxa did contend that it was
improperly disqualified.
[109]
In relation to the Central Basin Proxa pointed out that its
interim relief was not forgone until there was an answer
from TCTA,
which was provided in the Answering Affidavit, a perfectly reasonable
position to take. It had also foregone its interim
relief after
receiving the answers from TCTA and Nafasi. It however notified both
that it intended to proceed with the review in
respect of both
facilities. In so doing it took a decision which it is entitled to
do, to ask for the Rule 53 record in order to
evaluate whether the
tender process was lawfully conducted, which is a safeguard against
state departments acting unlawfully and
to make sure that government
officials are kept accountable.
[110]
This however is proof that there was no position or valid ground when
Proxa launched the urgent Application,
that is Part A, but only
suspicion that the delayed response on the outcome might be because
something was not right. It was indeed
confirmed by the withdrawal of
the reliefs sought in that Application which included foregoing or
abandonment of the interim order
that was granted. Proxa should have
tendered the costs with its application for postponement, its
liability being apparent, or
on withdrawal of the Application. The
postponement was an indulgence it was afforded after setting the
matter down for hearing.
The fact that it still argued for the
Respondent to pay the costs occasioned by the postponement must be
frowned upon.
[111]
Subsequent to the withdrawal of the Urgent Application, Proxa was
bent on challenging the award of the tender
to Nafasi on whatever
basis it regarded suspect. Whereas it acknowledged that it and the
other tenderers were properly disqualified,
it then alleged that
Nafasi should also have been disqualified since it failed to submit
CVs on behalf of its key personnel. Only
to later concede that the
CVs were not part of the requirements of the RfT. It nevertheless
continued to demand Nafasi’s
disqualification on the basis that
the information on Nafasi’s Form 2 as per RfT was insufficient
without the CVs, notwithstanding
it being compliant and its tender
being acceptable. Moreover, that Nafasi’s key personnel could
not be properly evaluated
for functionality without the CVs.
[112]
It is further noted that the B-BBEE certificate issue remained
pending until after the receipt of the Rule
53 record. Proxa allege
that the basis for that was because TCTA failed to furnish
information to it that the certificate was filed
prior to the
granting of the award for both facilities. Whilst TCTA points out
that a valid certificate was available as at the
time of the closing
of the bid and before the award was made. Nafasi provided a new
certificate on 22 November 2020 before the
date when Nafasi was
contractually required to commence with the work.
[113]
It was certainly an expensive probationary mission that does
not justify that the other side incur any costs. Had it
not been for
the reason that the issues raised were allegedly founded on rights
that arise from the Constitution, a punitive costs
order would have
been the appropriate sanction. I also have to consider that Proxa did
confirm that it has a commercial interest.
The basic principle in
that regard
being
that the award of costs, unless otherwise enacted, is in the
discretion of the presiding judicial officer, and that the successful
party should, as a general principle, have his or her costs.
[27]
[114]
Under the circumstances the following order is made:
1.
The Application is dismissed with costs, such costs to include the
costs occasioned by the postponement of
the Urgent Application in
Part A and those attendant upon the employment of two Counsels by the
1
st
Respondent.
N
V Khumalo
Judge
of the High Court
Gauteng
Division, Pretoria
For
the Applicant:
HOPKINS
K SC
Kevin@kevinhopkins
Instructed
by:
GLYN
MARAIS INC
rduplessis@glynmarais.co.za
klewis@glynmarais.co.za
For
the 1
st
Respondent:
ARNOLD
SUBEL S C
NOMONDE
NYEMBE
subel@group621.co.za
Instructed
by:
ALLEN
& OVERY Attorneys
Gherhad.Rudolph@allenovery.com
Rebecca.thomson@allenovery.com
For
the 2
nd
Respondent:
ALFRED
COCKRELL SC
Instructed
by:
WEBBER
WENTZEL
Vlad.movshovich@webberwentzel.com
Dylan.cron@webberwentzel.com
[1]
S217 Procurement. –
(1)
When an organ of state in the national, provincial or local sphere
of government, or any other institution identified in national
legislation contracts for goods or services, it must do so in
accordance with a system which is fair, equitable, transparent,
competitive and cost-effective.
(2)
Subsection (1) does not prevent the organs of state or institutions
referred to in that subsection from implementing a procurement
policy providing for-
(a)
categories of preference in the allocation of contracts; and
(b)
the protection or advancement of persons, categories of persons,
disadvantaged by unfair discrimination.
(3)
National legislation must prescribe a frame work within which the
policy referred to in subsection (2) must be implemented.
[2]
Framework
for implementation of preferential procurement policy
[3]
Section 2
(1)
An
organ of state must determine its preferential procurement policy
and implement it within the following framewo
rk:
(a)
A Preference point system must be followed;
[4]
which provides that:
‘
A
court has the power to judicially review an administrative action if
the action is not rationally connected to:
(aa)
the purpose for which it was taken
(bb)
the purpose of an empowering provision
(cc)
the information before the administrator or
(dd)
the reasons given for it by the administrator”
[5]
which provides that:
“
A
court has the power to judicially review an administrative action if
the action was taken because irrelevant considerations
were taken
into account or relevant consideration were not considered “
[6]
which provides that:
“
A
court has the power to judicially review an administrative action if
the administrator who took it was bias or reasonably suspected
of
bias
.”
[7]
1996 (1) SA 984 (CC)
[8]
1995(2)
SA 813 (W) at 843
[9]
2013 (3) BCLR 251 (CC)
## [10](392/2017)
[2018] ZASCA 72 (30 May 2018)
[10]
(392/2017)
[2018] ZASCA 72 (30 May 2018)
[11]
Supra
at
67 par 52
[12]
[2011]
ZASCA 202
;
2012
(2) SA 16
(SCA)
para 40.
[13]
Pharmaceutical
Manufacturers Association of SA and Others; In Re: Ex Parte
Application of President of the RSA and Others
2000]
ZACC 1
(25 February 2000)
above
n 61 at para 90
[14]
Prinsloo
v Van der Linde and Another
(CCT4/96)
[1997] ZACC 5
;
1997 (6) BCLR 759
;
1997 (3) SA 1012
(18 April 1997)
[15]
Prinsloo
above
i
n
para 35
[16]
At
par 85 & 86
[17]
Section 217 (1) of the Constitution of the Republic of South Africa,
1996.
[18]
Airports Company South Africa SOC Ltd v Imperial Group Ltd and
Others
[2020] ZASCA 2
;
2020 (4) SA 17
(SCA), para 64.
[19]
Section 2(1) of the PPPFA.
[20]
Section 2(1)(a) read with section 3 of the PPPFA.
## [21]South
African National Road Agency Ltd v The Toll Collect Consortium and
Another(796/2012)
[2013] ZASCA 102; [2013] 4 All SA 393 (SCA); 2013 (6) SA 356 (SCA)
(12 September 2013)
[21]
South
African National Road Agency Ltd v The Toll Collect Consortium and
Another
(796/2012)
[2013] ZASCA 102; [2013] 4 All SA 393 (SCA); 2013 (6) SA 356 (SCA)
(12 September 2013)
[22]
(796/2012)
[2013] ZASCA 102
;
[2013] 4 All SA 393
(SCA);
2013 (6) SA 356
(SCA)
(12 September 2013)
[22]
ERF
16 Bryntirion (Pty) Ltd v Minister of Public Work
s
(11375/08) [2010] ZAGPPHC 154 (12 October 2010
[23]
Pharmaceutical
Manufacturers Association of SA and Others ;In Re: Ex Parte
Application of President of the RSA and Others
[23]
;
New
National Party of South Africa v Government of the RSA and
Others
[
1999]
ZACC 5
;
1999
(5) BCLR 489
(CC)
[1999] ZACC 5
; ;
1999
(3) SA 191
(CC)
at paras 19 and 24
[24]
Poverty
Alleviation Network and others v President of the RSA and
others
[2010]
ZACC 5
,
24 February 2010 at para 71
[25]
(CCT
27/03)
[2004] ZACC 15
;
2004 (4) SA 490
(CC);
2004 (7) BCLR 687
(CC)
(12 March 2004)
[26]
at
paras 84-5
[27]
Ferreira
v Levin NO Others; Vryenhoek & Others v Powell NO &
Others
[1995]
ZACC 2
;
1996
(4) BCLR 441
(CC)
[1996] ZACC 27
; ;
1996
(2) SA 621
(CC).
sino noindex
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