Case Law[2024] ZAWCHC 139South Africa
Prosec Guards CC v Department of Public Works and Infrastructure and Others (2501/23; 2502/23) [2024] ZAWCHC 139 (24 May 2024)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Prosec Guards CC v Department of Public Works and Infrastructure and Others (2501/23; 2502/23) [2024] ZAWCHC 139 (24 May 2024)
Prosec Guards CC v Department of Public Works and Infrastructure and Others (2501/23; 2502/23) [2024] ZAWCHC 139 (24 May 2024)
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IN THE HIGH COURT OF
SOUTH AFRICA
[WESTERN
CAPE DIVISION, CAPE TOWN]
Case nos. 2501/23 &
2502/23
In the matter between:
PROSEC
GUARDS
CC
Applicant
and
THE DEPARTMENT OF
PUBLIC WORKS &
INFRASTRUCTURE
First
respondent
THE DIRECTOR-GENERAL:
DEPARTMENT OF
PUBLIC
WORKS & INFRASTRUCTURE
Second respondent
THE REGIONAL BID
ADJUDICATION COMMITTEE:
DEPARTMENT
OF PUBLIC WORKS & INFRASTRUCTURE
Third respondent
KRA
SECURITY &
PROJECT
Fourth
respondent
TRUST
ONE GUARD SECURITY SERVICES (PTY) LTD
Fifth
respondent
KUZINCA
PROTECTION SERVICES (PTY) LTD
Sixth
respondent
MMAPULA
SECURITY SERVICES & PROJECTS CC
Seventh
respondent
SNIPER
SECURITY (PTY) LTD
Eighth
respondent
KWANDI
SECURITY SERVICES (PTY) LTD
Ninth
respondent
SENIOR
QUALITY PROTECTION & PROJECTS (PTY) LTD
Tenth respondent
And:
In the matter between:
PROSEC
GUARDS
CC
Applicant
and
THE DEPARTMENT OF
PUBLIC WORKS &
INFRASTRUCTURE
First
respondent
THE DIRECTOR-GENERAL:
DEPARTMENT OF
PUBLIC
WORKS & INFRASTRUCTURE
Second respondent
THE REGIONAL BID
ADJUDICATION COMMITTEE:
DEPARTMENT
OF PUBLIC WORKS & INFRASTRUCTURE
Third
respondent
KRA
SECURITY & PROJECT
Fourth
respondent
TRUST
ONE GUARD SECURITY SERVICES (PTY) LTD
Fifth
respondent
MVELAMASWAZI
TRADING (PTY) LTD
Sixth
respondent
MMAPULA
SECURITY SERVICES & PROJECTS CC
Seventh
respondent
SNIPER
SECURITY (PTY)
LTD
Eighth
respondent
BLUE
FALCON (PTY)
LTD
Ninth
respondent
S
ISMAIL t/a
ALCATRAZ
Tenth
respondent
SIX
COMBINED CORPORATIONS CC
Eleventh
respondent
JUDGMENT DELIVERED
(VIA EMAIL) ON 24 MAY 2024
SHER, J:
1.
The applicant is a security services
provider. It seeks to review and set aside decisions which were taken
by bid evaluation and
adjudication committees of the Department of
Public Works and Infrastructure, whereby it was disqualified as a
bidder from tenders
which were advertised for the provision of
safeguarding and protection services (tender CPT 9/22) and tactical
services (tender
CPT 10/22), to State properties in the Western Cape.
2.
In tender CPT 9/22, which was
advertised on 24 October 2022, the applicant was disqualified on 16
November 2022 on the basis that
it had scored less than the requisite
50% minimum required for ‘functionality’. In tender CPT
10/22, which was advertised
on 11 November 2022, the applicant was
disqualified on 12 November 2022 on the basis that its bid was
non-responsive as it had
failed to submit a copy of a valid
registration certificate issued by the National Bargaining Council
for the Private Security
Sector (‘the NBC’), together
with its bid.
The facts
3.
The matters before Court are two of six
applications which were launched by unsuccessful bidders to challenge
the award of the 2
tenders, which were set down to be heard on the
same day. Four of these matters were removed shortly before they were
to be heard,
on the basis that they had either settled or were to be
postponed. In the two matters for adjudication the 1
st
to 3
rd
respondents are the relevant State functionaries who were responsible
for the tenders, and the remaining respondents are the bidders
to
whom the tenders were awarded. None of these bidders sought to
participate in the proceedings. In the circumstances where reference
is made to ‘the respondents’ it is to be understood as a
reference to the 1
st
to 3
rd
respondents.
(i)
The tender documentation
4.
The tender documentation in both matters is
virtually identical. It consists of a Notice and Invitation to Bid
(‘Part A’)
and the terms and conditions which are
applicable (‘Part B’), including so-called ‘terms
of reference’
and ‘special conditions’, together
with the relevant forms which bidders were required to complete and
submit.
5.
On the first page of the Notice and
Invitation to Bid bidders were informed, at the outset, that only
those who were ‘responsive’
to certain criteria which
were stipulated would be eligible for consideration. In this regard
amongst the ‘responsiveness’
criteria listed were
requirements pertaining to the lodging and submission of a host of
documents, including so-called ‘compulsory
returnable’
documents to be set out on form DPW-09, and copies of several valid
registration certificates,
inter alia
from the NBC and the PSIRA (the Private Security Industry Regulatory
Authority).
6.
In addition, the Notice and Invitation to
Bid informed bidders that they were to comply with a range of
‘pre-qualification’
criteria which pertained to
their B-BBEE status and their ‘functionality’, which
would be used to establish ‘minimum
qualifying’
requirements, whereafter the bids they had submitted would be
evaluated on the basis of price and preference
in accordance with the
80/20 formula applicable (as the tender value was below R 50
million).
7.
‘
Functionality’ was to be
scored out of a total of 100 points, and to qualify on this aspect
bidders would have to obtain 50%
thereof i.e. 50 points. The points
break-down were as follows: 60 points were allocated to A) company
experience on security guarding
projects; 20 points were allocated to
B) ‘infrastructure requirements’ in relation to having an
administrative office
in SA; and the remaining 20 points were
allocated to C) ’infrastructure requirements’ in relation
to response vehicles.
8.
The bid requirements pertaining to each of
these criteria were set out in detail. Thus, as far as company
experience was concerned
what was required was experience of
completed security projects to a minimum value (of R300 000 in
respect of tender 9/22 and R500
000 for tender 10/22) which had been
undertaken ‘accumulatively’ (sic) in the preceding 5
years between 2017 and 2022.
The ‘means of proving’ this
experience was ‘subject to the attachment of appointment
letters/contracts/SLA’s/purchase
orders’ from employers
‘with reference letters clearly stating the contract value,
name of employer, duration of the
contract and contract details’.
9.
Only projects that had been completed prior
to the closing date of each tender qualified for consideration and
had to be recorded
on the DPW-09 form, and the Department reserved
the right to verify them. A failure to provide information on the
DPW-09 regarding
a bidder’s previous experience would lead to
‘no scoring’ of points for this criterion. To claim the
full complement
of 60 points for experience bidders would not be able
to rely only on a single completed project. They were only eligible
for a
full score if they had completed 3 projects or more, in which
event they would qualify for 5 out of 5 points, whereas if they had
only completed 2 projects they would score 3 points, and if they had
only completed a single project, they would only get a single
point.
Thus, to qualify for a full 60 points i.e. a 5 out of 5 score on this
aspect of the functionality criterion bidders would
have to have
completed 3 projects or more.
10.
As far as the infrastructure requirements
pertaining to an office were concerned, it was stipulated that
bidders were required to
have an administrative office within the
borders of SA. They were to supply proof thereof by submitting either
a copy of a title
deed evidencing ownership of such a property, or a
signed lease agreement which was valid for the duration of the
contract which
was to be concluded following upon the award of the
tender, which in the case of tender 09/22 was to be for a period of
24 months.
This section also made use of a 5-point scoring system: to
obtain a full score (i.e. 20 points) ‘satisfactory proof’
was to be provided of ownership or a lease agreement and 0 points
would be awarded if such proof was not supplied. In a note in
parentheses at the bottom of this section it was noted that for the
purpose of scoring on this part of the functionality assessment
the
Department would accept an existing administrative office which was
outside of the Western Cape, but to be allocated work the
successful
bidder would be required to open or lease an office in the province
within 7 days.
11.
In part C of the functionality section,
bidders were required to provide proof they had 2 response vehicles
available. If they owned
the vehicles proof of ownership was to be
supplied by means of a copy of an e-NATIS ‘report’ i.e. a
report drawn from
the National Administration Traffic System, which
showed that the vehicles were registered under the applicant’s
directors’
or company names. If the vehicles were leased, a
signed copy of the lease agreement was to be provided. If the
vehicles were neither
owned nor leased, as yet, a letter of intent to
buy or lease would suffice. In such instance, as in the case of the
infrastructure
requirements pertaining to an administrative office,
if awarded the tender a successful bidder who was not yet in
possession of
the vehicles would have 7 days after the conclusion of
a contract pursuant to an award, to buy or lease them.
12.
In response to the invitation to bid in
tender 09/22, the applicant listed 6 projects on its DPW-09 form as
having been completed
in the preceding 5 years. Two of these were
tenders for the City of Cape Town: 1) tender 207 of 2016/17 which was
for a contract
sum of R117.9 million odd and had been carried out
over the period 1 December 2018-30 April 2022 and 2) tender 80S of
2012-2013
which was for a contract sum of R60 million odd and had
been carried out over the period 1 October 2014-30 November 2018.
13.
In addition, it listed two tenders it had
completed for the Department of Agriculture, Forestry and Fisheries
(‘DAFF’):
one was for a contract sum of R483 383 for a
5-month project between March and August 2019 and the other was for a
contract sum
of R272 587 for an 11-day project in August 2018.
14.
The remaining 2 projects listed on the
DPW-09 were for work done for the National Lotteries Commission for a
contract sum of R211
581 over the period March 2016 to December 2017,
and for Willjarro (Pty) Ltd for a contract sum of R375 680 over a
30-month period
between December 2016 and January 2018.
15.
In substantiation of the 6 projects the
applicant submitted a letter from a Mr T Jackson the Head of Safety
and Security Services:
Facilities Management of the City of Cape
Town, dated 30 October 2018, a purchase order dated 29 March 2019 in
respect of the DAFF
tender for the contract sum of R483 363, and a
letter of ‘commendation’ from a project manager at
Willjarro (Pty Ltd
dated 21 February 2017.
16.
Regarding the requirement to submit proof
of an administrative office in South Africa the applicant attached a
copy of a lease agreement
which it had concluded for the lease of
premises in Milnerton, in Cape Town, for a period of 3 years between
1 December 2018 and
30 November 2021. The agreement provided that the
lessee had an option to renew the lease for a further 3-year period,
provided
it gave written notice of its intention to do so at least 3
calendar months prior to the expiry of the initial 3-year period. The
applicant did not attach any documentation evidencing an extension of
the lease.
17.
In relation to the requirement to provide
proof of ownership or lease rights over 2 response vehicles the
applicant attached copies
of registration certificates, in the name
of the Republic of South Africa, for a 2021 Toyota Agya and a 2021
Toyota Corolla.
18.
That then as far as the documents in
respect of tender 09/22. As far as tender 10/22 is concerned it is
not necessary to traverse
the full bid documentation that was
submitted, given that the applicant was disqualified on the basis
that it failed to submit
a copy of a valid certificate of its
registration with the NBC. In this regard reference need only to be
made to 2 documents which
were annexed to the applicant’s bid
submission. Both were on the letterhead of the NBC. In the first of
these, which was
dated 5 October 2022, and which had as its subject
heading the reference ‘Letter of Good Standing’, the
General Secretary
of the NBC confirmed that the applicant ‘levied
contributions in accordance with the levy agreement as published and
extended
to non-parties’ (and) ‘are up to date’
(sic). In the second, which had as its subject heading ‘Confirmation
of Registration and Paid-up Levies’ the General Secretary
provided the same confirmation as was previously given in the first
letter viz that the applicant was fully paid up as far as its levy
contributions were concerned. The letter did not expressly state
or
confirm that the applicant was registered with the NBC.
(ii)
The applicant’s papers
19.
The
founding affidavit which was filed by the applicant in case number
2501/23 (which pertains to tender 09/22) raised a single
ground of
review viz that the Department had failed to evaluate the applicant’s
bid, and this was procedurally unfair, contrary
to its right to
lawful administrative action in terms of the Promotion of
Administrative Justice Act (‘PAJA’).
[1]
20.
After it had occasion to consider the
record of the decision which was filed in terms of rule 53 the
applicant filed a supplementary
founding affidavit. In that affidavit
it noted that its bid had been considered by the bid evaluation
committee (‘the BEC’)
and had been disqualified on the
basis that it had failed to obtain the requisite 50% score for
functionality i.e. 50 points. The
applicant had in fact received no
points at all and was scored 0%. From handwritten notes which were
made on its bid documents
it appeared this was because, according to
the BEC, it had failed to submit the required reference letters. The
applicant took
issue with this. It contended that, from its reading
of the bid specifications, where a bidder listed 3 projects or more
on the
DPW-09 it qualified to be allocated 5 out of 5 points i.e. the
full weighting of 60 points. It contended further that, in any event,
it had submitted the requisite ‘reference’ letters ‘where
they were available’. In this regard, it claimed
that a
reference letter for the two City of Cape Town tenders had been
supplied by Mr Jackson, the Head of Facilities and Management
Services, and for the Willjarro project a reference letter had been
provided by a project manager. As for the DAFF projects it
had
supplied a purchase order for the March-August 2019 project, to the
value of R483 383. It averred that consequently, given
the submission
of these documents it qualified for the full complement of points for
this aspect of functionality i.e. 60.
21.
As for the requirements in relation to
proof of an administrative office it said that due to an ‘inadvertent
error’
it had only attached a copy of the lease agreement it
had concluded in 2018, which had expired in 2021, and had failed to
submit
proof of its subsequent renewal. It conceded that in the
circumstances the BEC had correctly found that on the information
supplied
the lease had lapsed and was not valid, and the applicant
should be awarded no points on this aspect. But in its supplementary
affidavit it sought to retract the concession it made and pointed out
that it was currently in possession of premises in Cape Town,
in
terms of a lease agreement which had been entered into during March
2023, which agreement was valid for the duration of the
contracts
which were concluded pursuant to the award of the tenders.
22.
As for the proof required in relation to
its response vehicles, whilst it conceded that the bid specifications
required a copy of
a ‘report’ issued by e-NATIS and that
it had instead supplied a copy of 2 registration certificates, it
pointed out
that these certificates were issued by e-NATIS, and
averred that they contained the same information that would have been
recorded
in a report. Consequently, it contended that it qualified
for the full 20 points available in respect of this aspect of the
functionality
requirements as its bid was substantially in compliance
with the tender specifications.
23.
Thus it contended, in summary, that it
should have been scored as having obtained a total of 80 points for
functionality (60 for
experience and 20 for its response vehicles)
and should accordingly not have been disqualified without its bid
being considered.
Such a score rendered it more competitive as far as
functionality and price was concerned, than many of the bidders to
whom the
tender had been awarded.
24.
As far as tender 10/22 is concerned, in its
founding affidavit the applicant similarly relied on a single ground
of procedural unfairness.
It contended that the 1
st
respondent had failed to notify it of the award of the tender and the
reasons why its bid had been rejected. In its supplementary
founding
affidavit it indicated it was abandoning this ground and was raising
a complaint that its bid had wrongly been rejected
as being
non-responsive. It contended that, by way of the letters from the NBC
dated 5 October and 2 December 2022 it had supplied
the requisite
proof of its registration with the NBC. In this regard it submitted
that, although the letters did not expressly
say that it was
registered, it was impossible to be in good standing without being
registered. In any event, it was also apparent
from the heading of
the letter dated 2 December 2022 that it must have been registered at
the time it submitted its bid. It contended,
in the alternative, that
to the extent that the confirmation which had been provided by the
NBC was ‘ambiguous’ (sic)
the bid adjudication committee
(‘the BAC’) should not have rejected its bid summarily
and should have sought clarification
as to its status, either from
the NBC or from the applicant itself, and its failure to do so prior
to disqualifying the applicant
for being non-responsive was
procedurally unfair.
(iii)
The respondent’s papers
25.
In their answering affidavits the
respondents pointed out that the tender documentation for each tender
contained both responsiveness
and ‘pre-qualification’
criteria, which included criteria in relation to functionality, and
it was clearly stipulated
that a failure to comply with these bid
specifications would result in disqualification without the merits of
a bid being considered.
26.
To be considered responsive and therefore
eligible for evaluation, bidders were required to comply with several
mandatory requirements,
which included having to submit certain
prescribed documentation. Amongst these were copies of valid
certificates from certain
institutions or entities, including the
NBC. In addition, bidders were also required to submit a range of
additional documents.
These included letters of ‘good standing’
from certain entities (including the NBC). The invitation to bid
clearly
stated that if bidders failed to submit the prescribed
documents required they would be disqualified, and their bids would
not
be considered.
27.
Likewise, the invitation required bidders
to comply with certain compulsory ‘pre-qualification’
criteria, to be considered
eligible for preferential procurement.
These included having to comply with certain prescribed B-BBEE and
minimum functionality
requirements.
28.
The bid which was submitted by the
applicant in tender 9/22 failed to comply with the functionality
criteria that were stipulated
and in the case of tender 10/22 was
non-responsive. In this regard, as far as experience was concerned
bidders were required to
provide proof of having undertaken and
completed security projects to the minimum value specified, as listed
by them on form DPW-09
over the preceding 5 years, by submitting
documents which evidenced the awarding of the projects to them, such
as appointment letters,
agreements or purchase orders,
together
with
reference letters which confirmed
the contract values, names of employers, duration of the contracts
and the contract details.
Thus, reference letters confirming these
particulars were mandatory.
29.
If one considered the documents that were
submitted by the applicant in respect of this requirement in tender
9/22, it was evident
that it had failed to do what was necessary in
respect of the projects listed by it on the DPW-09. In this regard,
as far as documents
evidencing the award of the projects was
concerned save for a purchase order for one of the DAFF projects not
a single primary,
source document of the type specified, was
provided, and not a single proper reference letter confirming the
award and completion
of these projects, as required by the
pre-qualification criteria, was provided. The letter which the
applicant provided from Mr
Jackson of the City of Cape Town dated 30
October 2018 simply ‘confirmed’ that the contract which
was concluded in
terms of tender 80S of 2012/13 was extended for a
period of 5 months from 1 July 2018 and was terminated on 30 November
2018. It
did not however confirm the contract value or duration of
the contract, or the other particulars listed in respect of this
project
on the DPW-09 form. The letter also made no mention of the
other city of Cape Town tender/project listed and did not confirm it.
Likewise, the letter which was provided in respect of the Willjarro
project did not confirm its contract value and duration, and
no
reference letters were provided for either of the DAFF projects
listed on the DPW-09.
30.
In similar vein the applicant had failed to
submit the necessary documentation required in proof of compliance
with the infrastructure
requirements for functionality pertaining to
its office and response vehicles. As far as the office was concerned
it had provided
a copy of a lease agreement which had already expired
the previous year and was no longer valid. As far as the motor
vehicles were
concerned it had provided copies of vehicle
registration certificates instead of an e-NATIS report.
31.
The respondents pointed out that in the
compulsory briefing session which was held for potential bidders for
tender 09/22 on 27
November 2022 it was made clear by the
Deputy-Director: Supply Chain Management, that reference letters were
required in addition
to documentation that evidenced the award of
completed projects listed on the DPW-09, and any lease agreement
which was to be relied
upon was to be valid for the duration of the
proposed contract which was to be concluded pursuant to the award of
the tender. Bidders
were also expressly warned that no registration
documents would be accepted in lieu of proving ownership or lease
rights over their
response vehicles, and an e-NATIS ‘report’
was required.
32.
In respect of tender 10/22 a compulsory
briefing session was likewise held with potential bidders on 23
November 2022 at which similar
warnings were given by the
Deputy-Director: Supply Chain Management in relation to mandatory
pre-qualification and responsiveness
requirements. in this regard
bidders were warned that they were required to submit a valid
certificate of registration issued by
the NBC, as well as a letter of
good standing. If they did not have a letter of good standing
available at the time of submission
of their bids, they had 21 days
to provide it.
An assessment
(i)
The law
33.
The
bid specifications and evaluation criteria which are set out in an
invitation to tender, together with the applicable constitutional
and
legislative provisions that deal with procurement, constitute the
‘legally binding’ framework within which public
tenders
must be submitted, evaluated and awarded.
[2]
34.
As
far as the constitutional provisions are concerned, s 217(1) of the
Constitution states that when an organ of state contracts
for goods
or services it must do so in accordance with a system which is fair,
equitable, transparent, competitive, and cost-effective.
These
imperatives are reiterated in several legislative instruments,
including the Preferential Procurement Policy Framework Act
[3]
(‘the PPFA’) the Public Finance Management Act,
[4]
the Local Government: Municipal Systems Act
[5]
and the Local Government: Municipal Finance Management Act
[6]
and various regulations which have been promulgated in terms
thereof.
[7]
In
Tetra
Mobile
[8]
the Supreme Court of Appeal noted the importance of fairness and
transparency and how these values ‘permeate’ the entire
tender process.
35.
In
assessing whether the award of a tender was fair the focus is on the
process and not on the result.
[9]
Fairness is a procedural requirement which is aimed at ensuring
even-handed treatment of bidders. As competitors, they are
required to be treated equally.
[10]
36.
Whether
a tender process has been fair is a matter that must be determined on
the facts of each matter.
[11]
They will establish whether any ‘shortfall’ in any of the
requirements listed in s 217(1) of the Constitution amounts
to
procedural unfairness, irrationality, unreasonableness, or any of the
other review grounds set out in PAJA.
[12]
37.
The
applicant’s counsel emphasized the duty on organs of state in
tender matters, to act fairly, and pointed out that in
Metro
[13]
the SCA held this may require BECs to request a bidder whose bid is
not strictly compliant with tender specifications to provide
clarification or further details in respect thereof, or to explain an
ambiguity or correct an obvious mistake. He submitted that
the BECs
had such an obligation in these matters, which it had failed to
discharge.
38.
It is important to note that the SCA did
not hold that this was a general requirement or principle which finds
application in every
matter in which a bidder’s submission is
deficient. Whether such an obligation exists in a particular matter
depends on the
circumstances: whilst it may be necessary in certain
instances for a tender authority to query or approach a bidder in
other instances
it may not be so.
39.
Applicant’s
counsel further submitted that insofar as the respondents sought to
contend that, in terms of the PPFA
[14]
an acceptable bid was one which complied ‘in all respects’
with the specifications and conditions of an invitation
to tender, in
Millennium
Waste
[15]
the SCA confirmed (with
reference to its earlier decision in
JFE
Sapela
)
[16]
that the phrase was not to be applied in a literal sense and was to
be construed against the background of the procurement system
envisaged by the constitutional imperatives in s 217.
[17]
Thus, the SCA held this did not mean that a bidder had to comply with
every condition or specification of a tender invitation and
was not
compelled to do so in relation to conditions or specifications which
were immaterial, unreasonable, or unconstitutional.
[18]
In determining whether a bidder’s non-compliance made its bid
‘unacceptable’ regard was to be had to the purpose
of the
condition or specification with which there had not been exact
compliance; and the condition or specification was not to
be applied
mechanically to disqualify a bidder.
[19]
40.
In
Millennium
Waste
the bidder had submitted a declaration of interest (or non-interest
as it should probably be called) in respect of relatives, family
etc
in its bid, which had been initialled but not signed at the end
thereof, due to an oversight. Jafta JA held that the non-compliance
was condonable as it was not incompatible with the public
interest.
[20]
41.
Consequently, the applicant’s counsel
contended that, insofar as the applicant had failed to comply exactly
or strictly with
the bid specifications and conditions, particularly
those pertaining to the submission of a valid NBC certificate and an
e-NATIS
report, this should be condoned as it had complied
substantially with them.
42.
Once
again, the applicant’s reliance on a decision of the SCA is
subject to qualification. In
Millennium
Waste
the
relevant procurement regulation
[21]
which had been promulgated by the MEC for Finance and which was
applicable to the evaluation of the tender, allowed the tender
Board
to accept bids even if they failed to comply strictly with tender
specifications. There is no averment that any such regulation
was
applicable to the tenders in these matters.
43.
In
several subsequent decisions the SCA has deviated from the views it
expressed in
Millennium
Waste
and
has sought to qualify or distinguish it. Thus, in
Moroka
[22]
which was decided in
2014, it pointed out
[23]
that
it had previously held in
Pepper
Bay
[24]
(which was decided before
Millennium
Waste
)
that as a general principle an administrative authority has no
inherent power to condone a failure to comply with a peremptory
or
minimum qualifying requirement in a tender, unless it has been
expressly afforded a discretion to do so.
44.
In
Moroka
the tender invitation required bidders to submit an original tax
clearance certificate and stated that if they failed to do so
this
would render their bid liable to disqualification. The applicant
submitted a copy instead of the original certificate and
was duly
disqualified. The applicant conceded that there was no express
provision in the applicable procurement legislation or
in the tender
documentation, including the terms and conditions of tender, that
conferred a discretionary power of condonation
on the organ of state
but contended (as the applicant seeks to do in this matter), that
such a power could be implied from a clause
in the terms and
conditions of tender, which provided that the organ of state was
under no obligation to accept any bid or the
lowest one.
45.
The
SCA held
[25]
that, on a proper
interpretation this clause only applied to bids that had been validly
submitted in the prescribed manner and
not to bids that did not
satisfy the prescribed minimum requirements. It held further that it
was the organ of state’s prerogative
to specify what would
constitute a prescribed minimum requirement, not the courts, and in
the matter before it one of such requirements
was the submission of a
valid, original tax clearance certificate. As the conditions and
terms of tender did not confer a discretion
to condone a failure to
comply with this requirement the bid therefore did not pass the
threshold requirement and was not an acceptable
one in terms of the
PPFA.
[26]
46.
The
approach which was adopted in
Moroka
was
endorsed by the SCA in 2018 in
WDR
Earthmoving
,
[27]
where a bidder only submitted 2 years of annual financial statements
instead of the 3 which had been prescribed. The SCA reiterated
that
it was for organs of state to determine the prerequisites for a
responsive tender submission not the Court, and the failure
to comply
with such requirements would ordinarily result in disqualification as
a non-compliant bid would not be an acceptable
one, unless, as was
held in
Millennium
Waste
the
prescribed requirements or conditions of tender which had not been
complied with were immaterial, unreasonable or unconstitutional.
[28]
In addition, it reiterated that an administrative tender authority
has no inherent power to condone a failure to comply with peremptory
requirements set by it, unless it has been afforded a discretion to
do so, either in terms of a legislative provision or the terms
and
conditions of tender.
[29]
Consequently, as it was peremptory i
n
terms of both the invitation to tender and procurement regulations
for
bidders to submit 3 years of annual financial statements the bidder’s
non-compliance was not trivial or minor, and the
condition which
prescribed it to be a minimum qualifying requirement was not
immaterial, unreasonable or unconstitutional.
[30]
The SCA further confirmed, as per its decision in
Millennium
Waste
and
as endorsed in the subsequent decision of the CC in
Allpay,
[31]
that whether there has been material non-compliance with a condition
or provision of an invitation to tender is to be determined
by
considering the issue in the light of the purpose of the provision or
condition concerned.
47.
In
Allpay
the special conditions in the tender invitation had stipulated that
if bidders wished to tender to administer social grants on
behalf of
SASSA (the South African Social Security Agency) in more than one
province, they were to submit separate bids for each
province. One of
the bidders submitted a single, globular bid for all 9 provinces
instead of 9 separate ones and was disqualified
as a result. On
appeal it contended that its failure to comply exactly or strictly
with this requirement should be overlooked,
as there had been
substantial compliance.
48.
The
CC pointed out
[32]
that
whereas the materiality of non-compliance with legal requirements or
conditions in administrative law previously depended
on whether they
were mandatory or peremptory, as opposed to merely directory, and on
the basis of this distinction in the case
of the former strict
compliance was required whilst in the case of the latter substantial
compliance would do, this ‘mechanical
approach’ had since
been discarded and the ‘central element’ in determining
whether a bidder’s response
was sufficient was to link the
issue of compliance with the purpose of the provision or condition
which had not been strictly or
exactly complied with. What was
required essentially was to determine whether, viewed in the light of
the purpose of the condition
or provision, the bidder had done what
was required.
49.
The purpose of requiring separate bids for
each of the provinces was to enable SASSA to assess whether the
bidder would be able
to provide the necessary services in each of the
provinces for which it bid. As this purpose was attained in the
single bid submission
which had been put forward the CC was of the
view that the non-compliance was not material. However, the bidder
still ultimately
lost on appeal on the basis that SASSA had failed to
properly assess and confirm whether its bid complied with empowerment
and
transformation requirements.
50.
In
2018 the SCA similarly endorsed the approach which had been adopted
in
Moroka,
in
Overstrand
Municipality
,
[33]
which concerned an appeal against a decision which set aside the
award of a tender (for the operation and maintenance of a
municipality’s
bulk water and sewerage infrastructure) to a
bidder who, in its bid submission, had failed to comply with certain
prescribed minimum
staffing requirements, as prescribed by
regulation.
[34]
The
requirements were aimed at ensuring a consistent supply of the right
quality and quantity of water and the optimisation and
preservation
of the operations and infrastructure used to provide it. The SCA
reaffirmed that, whilst one should guard against
invalidating tenders
which suffered from minor deviations which did not materially depart
from the ‘characteristics, terms,
conditions and other
requirements’ set out in a tender invitation, where the
non-compliance was not of a trivial or minor
nature and was in breach
of a peremptory term, the bid would not be an acceptable one.
[35]
51.
The
most recent decision of the SCA on this aspect of the law is that in
Eskom
Holdings
,
[36]
in which judgment was handed down on 29 April 2024. It concerned an
appeal by Eskom against the judgment and order of the North
Gauteng
High Court, which upheld an application to review and set aside the
award of certain tenders for the provision of maintenance
and outage
services at power stations. The dissatisfied bidder, Babcock, was
disqualified for failing to submit proof of certification
in terms of
ISO 3834 i.e. certification of its capacity in terms of standards set
by the International Organisation for Standardisation.
Babcock had
stated in its bid submission that it was certified but had failed to
provide a copy of the certificate. It contended
that the bid
requirement was phrased in ambiguous terms and did not require
bidders to necessarily submit a valid certificate but
simply to
address the ‘issue’ of certification in satisfactory
terms. As a certificate was not a peremptory requirement
it could
therefore be provided after submission of the bids, as it had done.
Eskom’s decision to disqualify it for failing
to file an ISO
certificate was in any event unfair as Eskom knew it was in
possession of such a certificate as it had been servicing
its power
stations for extended periods of time, over many years, and it had
previously submitted copies of such a certificate
for that purpose.
52.
Eskom contended that the purpose of
requiring proof of certification was to ensure that bidders had the
requisite skills and experience
necessary to carry out the highly
specialised services required, and to treat bidders fairly and
equally. Consequently, a mere
statement that a bidder had ISO
certification could not constitute either actual or substantial
compliance with the prescribed
requirement and the conditions of
tender did not afford to it a power or discretion to condone such
non-compliance. It pointed
out further that at a ‘clarification’
meeting bidders were pertinently told that they were required to
submit an ISO
3834 certificate, and as it was a mandatory, returnable
document, bidders who failed to do so by the deadline would be
disqualified.
53.
The SCA held that the High Court’s
finding that the invitation to tender (which was in the form of a
Request for Proposals)
was ambiguous was not sustainable as the
wording was clear, and in any event at the clarification meeting
bidders had been expressly
told that they were required to submit a
certificate and a failure to do so would result in disqualification.
It also confirmed,
with reference to the principles laid out in
Allpay
,
Millennium Waste
,
WDR Earthmoving
and
Overstrand Municipality
that whereas instances of non-compliance of a trivial or minor nature
could pass muster, this was not so in the case of non-compliance
with
material terms or requirements. ISO certificates were required to
show that bidders possessed the necessary resources and
skills to
supply the required services to the appropriate standard, and it was
thus essential that Eskom be supplied with a valid
and current
certificate. The submission of an ISO certificate was also intended
to ensure consistency and fairness in the evaluation
and award of the
tender. At least 2 other bidders had been disqualified for failing to
submit ISO certificates and to allow the
appellant to be treated
differently simply because it was the incumbent service provider and
had previously submitted such a certificate,
would result in unfair
treatment towards other bidders. The requirement of providing an ISO
certificate was a compulsory and material
term of the invitation to
tender and Eskom did not have a discretion to condone non-compliance
therewith. Having regard for the
purpose of the requirement the mere
statement in its bid submission that Babcock had the necessary
certification did not constitute
actual or substantial compliance
with the requirement.
(ii)
The law applied
54.
The applicant contends that on a proper
i.e. contextual and purposive reading of the stipulated requirements
for functionality pertaining
to company experience the documents
referred to in this regard in tender 9/22 i.e. the source documents
and reference letters,
were not mandatory or compulsory and thus a
failure to submit them was not intended to result in a zero score. In
support of this
submission it sought to rely on the maxim
expressio
unius est exclusio alterius,
which
roughly translated means ‘where one thing is expressed the
other is excluded’
.
The
maxim has found application as an interpretative aid where there are
two possible meanings for a phrase or word in a legislative
instrument or document. In this regard the applicant submitted that
because it was expressly stipulated that a failure to provide
the
required information on the DPW-09 form regarding the bidder’s
experience would lead to ‘no scoring of points’
(sic),
whilst nothing was said about a failure to submit the source
documents and reference letters evidencing and confirming such
experience, it should be understood that a failure to submit the
source documents and reference letters was excluded from a similar
sanction or scoring and that it was not compulsory to submit them.
In any event, so it submitted, the terms of reference
reflected
that the municipality had a discretion to accept substantial as
opposed to exact or strict compliance with the documentary
requirements.
55.
It is trite that the process of
interpreting text in a document is a unitary exercise that involves a
consideration of the language
used in the light of ordinary rules of
grammar and syntax, the context in which the text appears in the
document as a whole and
the apparent purpose to which it is directed.
The process is an objective one that attempts to arrive at a sensible
and businesslike
meaning which seeks to give effect to the purpose.
56.
As previously pointed out functionality is
defined in the invitation to bid as a ‘pre-qualification’
criterion used
to establish a ‘minimum qualifying requirement’
and only those bidders who obtained the requisite 50 points i.e. the
threshold score were eligible for consideration on price and
preference. A contextual and purposive reading of the detailed
specifications
and requirements pertaining to functionality must
result in the following interpretation: In order to qualify for
points for experience
bidders were required to
prove
it by submitting 1) source documents
(such as letters of appointment, service level agreements or purchase
orders)
evidencing
that they had been awarded the projects of the minimum value
prescribed, as listed on their DPW-09 form,
and
2) reference letters which
confirmed
this by ‘clearly stating’ the contract value, duration,
employer particulars and contact details for each such project
listed. By stipulating that the ‘means of proving experience’
was ‘subject’ to the attachment of the requisite
source
and
confirmatory
documents i.e. the letters of reference, both of these classes of
documents became mandatory, returnable documents
that had to be
submitted.
57.
As
far as reliance on the
expressio
unius
maxim is concerned, as was pointed out by De Villiers JA almost 100
years ago in
SA
Ests
[37]
it is one which ‘must at all times be applied with great
caution’. It is not ‘strictly speaking’
a
rule of interpretation but a ‘principle of common sense’
by which a court may be guided in arriving at the intention
of the
author of a document.
[38]
Whether it is applicable depends on the terms of the document read as
a whole and ‘more especially upon the relation in which
the
thing expressed stands to the thing which is not expressed’ and
‘it by no means always follows that the mention
of one matter
implies the exclusion of what may at first sight appear the
converse’.
[39]
At
best therefore, if the maxim finds application it is no more than a
prima
facie
‘indicator of meaning’ and not a hard and fast rule.
[40]
In my view, on a proper and contextual reading of the section
pertaining to functionality in relation to company experience the
maxim does not find application. This is not an instance where there
are two possible interpretations of a phrase or word in a
text, and
the ‘express mention of one of the possibilities’
therefore implicitly excludes the other.
[41]
The fact that it was expressly stipulated that a failure to record
the necessary information on the DPW-09 form would lead
to a nil
score and would result in disqualification does not necessarily imply
that, because this was not similarly stated, in
that same portion of
the text, to be the consequence for failing to file source and
confirmatory documents proving a bidder’s
experience, it was
not mandatory to file such documents. The rest of the document,
particularly the first three pages of the invitation
to bid, make it
clear that the submission of the documents was a mandatory
requirement, failure to comply with which would result
in
disqualification.
58.
If one considers the bid documentation
which the applicant submitted it is clear that it failed to comply
with what was required
in regard to both the necessary source, and
the confirmatory, documents required for functionality for points for
experience. It
provided only a single source document, a purchase
order for a DAFF project, but details of the project were not
confirmed in an
accompanying reference letter. In fact, not a single
reference letter within the terms required, was provided for any of
the projects.
The letter from the Head: Facilities Management dated
30 October 2018 was in relation to one of the City of Cape Town
tenders (tender
80S) and simply confirmed its extension and
termination in November 2018. This does not tally with the statement
in the DPW-09
that this tender was one which endured for a period of
4 years between 2014 and 2018, and the letter did not confirm the
tender
by reference to its contract value and duration. Likewise, the
letter of ‘commendation’ from the project manager of
Willjarro (Pty) Ltd did not constitute a reference letter, in the
terms required, as it also did not confirm the contract value
and
duration of this project.
59.
Thus, in the absence of the provision of
the required source documents and reference letters for the 6
projects listed in the DPW-09
form the applicant was correctly scored
zero, as it was not eligible to be awarded any points for experience.
It also cannot be
suggested that the documents submitted constituted
substantial compliance with what was required. Put differently, in
terms of
the formulation which was adopted in
Allpay
it cannot be said that, given the purpose of the requisites
pertaining to company experience, the applicant complied in effect,
in substance and form.
60.
As for the functionality requirements
pertaining to an administrative office, although the applicant
conceded in its own founding
affidavit that it was correctly scored
zero as it failed to submit a copy of a valid lease agreement with
its bid submission, during
argument the applicant’s counsel
similarly sought to contend that the submission of such a document as
part of the bid was
not a mandatory requirement, and the lease could
be submitted afterwards. In this regard the applicant sought to rely
on clause
10.7 of the terms of reference which read as follows:
“
Proof
of Administrative Office in the Western Cape. (
This
requirement will not be used to score for functionality
.
It is applicable only to bidders who are residing or operating
outside the Western Cape) ‘
(my
underlining).
61.
On a first reading the clause appears to
contradict the contents of section B of the functionality criteria in
the invitation to
bid, which deals with the requirements of having an
administrative office. But once again, a proper reading requires one
to have
regard for the context in which clause 10.7 appears, in the
document as a whole. Clause 10.7 is part of clause 10, which from its
heading sought to deal with those ‘statutory documents
required’ which had to be submitted by ‘successful
bidders’
before any work would be allocated to them. This
clearly rendered the clause applicable only to those bidders who were
compliant
with the functionality requirements, by submitting the
required documents stipulated in section B of the Invitation to Bid,
with
their bid, namely proof of ownership or lease rights for an
administrative office ‘within the borders of South Africa’,
and who had then been awarded the tender after scoring for price and
preference.
62.
On a holistic reading there is no
contradiction between the two texts. Section B stated that the
department would accept an existing
office ‘even if it (was)
not in the Western Cape’, however a ‘successful bidder’
would be required to ‘open
or lease’ one in the Western
Cape within 7 days. What clause 10.7 sought to do therefore, somewhat
clumsily, was to extend
the requirement for opening an office in the
Western Cape, to
successful
bidders who had submitted valid bids (in accordance
inter
alia
with the functionality criteria of
having an office in SA), beyond the 7 days. Until they opened an
office in the Western Cape,
successful bidders would not be allocated
any work in terms of the tender. Clause 10.7 therefore cannot be
construed to excuse
pre-award bidders from complying with the
functionality criteria in section B and from submitting a copy of a
valid lease agreement
for their administrative office.
63.
As a fallback position the respondents
contended that any non-compliance that may have been present in
relation to the functionality
criteria should have been condoned by
the BEC/BAC, as it had a discretion to do so, in terms of various
terms and conditions in
the invitation to bid. To this end it sought
to rely on clauses 3 and 12 of the terms of reference and certain
subclauses therein.
64.
Clause 3 deals with the panel of work
providers that was to be appointed in order to give effect to the
objectives of the tender,
as set out in clause 2, and contains a
number of sub-provisions. In its opening paragraph it states that the
panel will consist
of ‘all bidders who met all’ the
requirements and criteria stipulated in the notice of invitation to
bid or the terms
of reference. It provided that bidders that were
appointed to the panel would be ranked from the lowest mark-up
percentage and
would be allocated work in accordance with this
ranking, for rotational periods of 3 months at the time. However, ‘no
allocation
of work would be done’ until bidders had fulfilled
all requirements stipulated in the tender documentation. Thus, it is
evident
that the clause sought to reiterate and emphasize that there
had to be compliance with mandatory requirements.
65.
The respondents sought to rely on a
sub-provision that stipulated that in the event that a bidder failed
to fulfil all the requirements,
or to submit the required documents
as stipulated ‘on’ (sic) administrative criteria and/or
terms of reference, within
a maximum of 21 calendar days, it would be
disqualified from participating on the panel. In the context of the
clause as a whole,
read with the various other provisions of the bid
specifications and functionality criteria previously referred to,
this provision
can only be construed as being of application to
successful bidders, who had submitted valid bids and had been awarded
the tender,
not to those who failed to qualify as responsive or
failed to qualify on functionality, because they had not submitted
documents
that were mandatory.
66.
As far as clause 12 is concerned, which is
headed ‘compliance’, a subclause therein stipulated that
a failure to provide
‘sufficient’ information ‘may’
disqualify a bidder. Once again, read in the context of the document
as
a whole, this clause cannot be read to confer a discretionary
power on the tender authority to condone non-compliance with
conditions
or requirements that were compulsory and material to the
tender. At best, it could be read to afford a discretionary power to
condone
trivial or minor deviations from what was required in
relation to the submission of information. Similarly, as far as the
‘clarification’
subclause in clause 12 is concerned,
which provided that the Department ‘may request clarification’
or further information
regarding any ‘critical aspect’ of
the bid, this was only a clause that allowed for the tender authority
to approach
a bidder to clarify an ambiguity or uncertainty, or an
obvious mistake. It did not afford the tender authority a
discretionary
power to condone a material non-compliance and did not
impose a duty on it to approach every bidder, in the case of any and
every
non-compliance with the bid specifications and functionality
requirements.
67.
That brings us to the requirements in
respect of the response vehicles. The applicant filed an affidavit
from a retired traffic
inspector, who pointed out that the e-NATIS
system has a database that stores comprehensive date pertaining to
motor vehicles that
are in use in SA, which include their
registration details, ownership history and licensing information.
From her knowledge and
experience a motor vehicle registration
certificate issued by e-NATIS is widely accepted as conclusive proof
of the registration
and ownership of a motor vehicle. She has never
come across the document referred to as an e-NATIS ‘report’
in the
functionality criteria, and on the face of it the document
generated in this regard from the e-NATIS system is one in response
to an ‘e-NATIS 163’ system query. The information
generated in an e-NATIS ‘report’ in response to such a
query is essentially the same information as that which would be
recorded in a registration certificate.
68.
From a comparison of the two documents it
is however apparent that, whilst an e-NATIS report contains
substantially the same information
in relation to a registered motor
vehicle, as one would find on its registration certificate, such as
its vehicle register, identification
and engine numbers and its make
and model, the e-NATIS report goes further: it contains a compilation
of such particulars in respect
of all vehicles which are owned by, or
registered in the name of a person or entity, including a director of
a company or member
of a close corporation. Unlike a registration
certificate it contains information pertaining to more than one
vehicle. Thus, the
information which the respondents would have
obtained had they been provided with a copy of an e-NATIS report for
the applicant
would have been a confirmation of whether it owned two
or more vehicles in its name, or in the name of its members or other
persons,
and the particulars of such vehicles. However, even if one
were to accept that, viewed in the light of the purpose of the
requirement
i.e. to apprise the City of the particulars of such
vehicles and whether they were indeed owned by and registered in the
name of
the applicant, it complied in effect with what was required
(i.e in pre-
Allpay
language there was substantial compliance), this would not be
sufficient to push the applicant over the 50% threshold required
for
functionality, as it would only have been entitled to be awarded 20
points.
69.
That then as far as tender 09/22 is
concerned. If one considers the tender documentation in tender 10/22
in the light of the accepted
principles the following emerges. In the
first place, the submission of a valid certificate of registration
issued by the NBC was
a mandatory requirement and bidders were
clearly informed on the very first page of the invitation to bid that
the failure to submit
it would render them non-responsive and subject
to disqualification, even before their bids would be evaluated for
preference and
price. That this was a material and compulsory
requirement was emphasised at the compulsory briefing session that
was held for
bidders. In contrast to this, the additional requirement
that bidders were to submit a letter of good standing from the NBC
was
not prescribed as a mandatory one, failure to comply with which
would result in non-responsiveness. The terms of the bid and its
special conditions stated that bidders who had already obtained such
a letter could submit it with their bid documentation, whilst
those
who had not could submit it later. The distinction between the 2
types of documents and the consequences attendant upon a
failure to
submit them, is evident from a reading of clause 9 of the terms of
reference. Both documents are referred to therein
as ‘statutory’
documents which were required and had to be submitted. The
certificate of registration had to be submitted
‘with the
tender document’ i.e. the bid and a failure to do so would
result in ‘elimination’ (sic). The
letter of good
standing was to be submitted by ‘successful bidders’ i.e.
bidders who qualified as responsive and had
been awarded the tender,
within 7 days thereof, and they would not be allocated work until
they did so.
70.
In their answering affidavit the
respondents stated that the purpose of requiring a valid NBC
registration certificate, as opposed
to only a letter of good
standing, was that a properly issued certificate served as conclusive
proof of a bidder’s registration
at the time of the submission
of their bid. In this regard it is evident (from a copy of a
registration certificate which was issued
to one of the successful
bidders) that it certifies and confirms that the holder thereof is
registered as an employer with the
NBC as at the date of issue
thereof. Importantly, the holder’s particulars are set out in
the certificate including, where
the holder is a company or close
corporation, its registered name and CIPC registration number, the
names of its directors or members
and its (registered) business
address.
71.
The applicant conceded that neither of the
2 letters from the NBC which it submitted qualified as a certificate,
either within the
ordinary, linguistic meaning commonly understood by
the term, or the meaning to be ascribed to the term in the context of
the particulars
that are ordinarily recorded on such a document by
the NBC. Neither of the letters expressly certified and confirmed
that the applicant
was registered with the NBC as at the date
thereof. Aside from wrongly referring to the applicant as ‘Prosec
Guards’
(it is in fact a CC), neither of the 2 letters
confirmed its registered name, registration number, registered
business address
and the names of its members. Both letters merely
sought to confirm that ‘Prosec Guards’ had levied
contributions to
the NBC in accordance with the levy agreement
applicable to the sector, but neither of them even set out the
‘contributor’s’
levy number, as would appear in the
case of a registration certificate.
72.
In the circumstances, the information
provided in the letters can hardly be considered to constitute
substantial compliance, in
terms of the submission of the requisite
information which would be provided to the municipality in a
registration certificate.
As to the applicant’s contention that
as both letters confirmed that it was in good standing and they
therefore implicitly
confirmed it was registered at the time as an
employer with the NBC, the following. In the first place, as was
pointed out in
Moroka
and
WDR Earthmoving
it is the prerogative of the tender authority to prescribe the type
and formal requirements of documents that are to be submitted
to
qualify a bid as responsive, not the courts, which should respect
such prerogative in recognition of the separation of powers.
Secondly, it seems to me that the argument is analogous to submitting
that because a professional is in good standing with their
regulatory
authority (such as the Legal Practice, Engineering or Health
Professions Council) as they have paid their membership
and other
dues, they must be possession of a valid certificate of their
admission as a legal or medical practitioner, or engineer.
Whilst one
would expect that this would ordinarily be the case it is not always
and necessarily so. It would depend on when the
certificate of
registration was issued and whether it is genuine and extant, and
when the dues were to be paid. Thus, where dues
are paid annually or
quarterly a professional may have paid them and would thus be in
‘good standing’ but may have
subsequently terminated
their membership of the regulatory body or may have been otherwise
removed from the roll of its members
for misconduct, or on request.
Thus, it does not necessarily and inevitably follow that a person who
is stated to be in ‘good
standing’ with a regulatory
authority is in fact a registered member of it.
73.
It
seems to me also that, given the distinction which is made between
certificates and letters of good standing in clause 9 of the
terms of
reference, to accept that a letter of good standing would on its own
suffice as proof of registration would be unfair
vis-à-vis
bidders as a group, as letters of good standing did not have to be
submitted with bids, unlike certificates of
registration. To adopt
the interpretation advanced by the applicant would mean that
notwithstanding the peremptory requirement
that bidders needed to
supply registration certificates in order to qualify as responsive,
before
being awarded the tender, they could ignore this requirement and
would qualify as responsive and would be eligible to be awarded
the
tender, as long as they were able to provide a letter of good
standing
after
the tender was awarded to them. This would potentially open the door
to unregistered bidders applying for and being awarded tenders
for
security services and only registering as employers thereafter with
the NBC, if at all. The interpretation would be manifestly
unfair to
the general body of providers in the security service industry. In
Steenkamp
[42]
the CC emphasized that tender processes require ‘equal’
compliance by bidders on the closing day for submission of
bids. In
tender 10/22 many bidders were disqualified for not submitting
registration certificates. To treat the applicant differently
would
be improper and unfair.
Conclusion
74.
In
the circumstances the applications must both fail. As far as costs
are concerned, although the applicant contended that on the
basis of
the principle in
Biowatch
it should not be mulcted in costs as it sought to vindicate its
constitutional right to fair administrative action, in my view
at
heart the matters essentially concern the applicant’s
commercial interests and there is no good reason to depart from
the
principle that ordinarily applies in disputes involving such matters
viz that costs should follow the event. In terms of the
recent
amendment that came into effect on 12 April 2024 by way of rule 67A,
Courts granting party-party costs orders are required
to indicate
which of three successively increasing scales of costs (A.B and C)
are to apply. In
Mashavha
[43]
Wilson J recently held
[44]
that the rule should not be applied retrospectively to matters that
were instituted and heard before 12 April 2024. Fees for work
done
before that date should be recoverable in terms of the rules that
applied before then.
75.
In the result I make the following order:
The
applications in case nos. 2501/23 and 2502/23 are dismissed with
costs, including the costs of two counsel where so employed.
M
SHER
Judge
of the High Court
(Digital
signature)
Appearances
:
Applicant’s
counsel: DC Joubert SC and D Lubbe
Applicant’s
attorneys: D Kotze Attorneys (Bellville)
First
-Third Respondents’ counsel: T Masuku, T Sarkas and L Matiso
First
-Third Respondents’ attorneys: State Attorney (Cape Town)
[1]
Act 3 of 2000.
[2]
Chief
Executive Officer, SA Social Security Agency & Ors v Cash
Paymaster Services (Pty) Ltd
2012(1)
SA 216 (SCA) para 15;
AllPay
Consolidated Investment Holdings (Pty) Ltd v Chief Executive
Officer, SA Social Security Agency
2014 (1) SA 604
(CC) para 38;
Westinghouse
Electric Belgium SA v Eskom Holdings (SOC)
2016 (3) SA 1
(SCA) para 43.
[3]
Act
5 of 2008.
[4]
Act
1 of 1999.
[5]
Act
32 of 2000.
[6]
Act
56 of 2003.
[7]
Including
the Preferential Procurement Regulations promulgated in terms of the
PPFA, the Treasury regulations promulgated in terms
of the PFMA, and
the
Municipal Supply Chain Management Regulations promulgated
in
terms of the MFMA.
[8]
Tetra
Mobile Radio (Pty) Ltd v MEC, Department of Works & Ors
2008
(1) SA 438
(SCA) para 10.
[9]
AllPay
n 2
para
42.
[10]
Premier,
Free State & Ors v
Firechem
Free State (Pty) Ltd
2000 (4) SA 413
(SCA) para 30.
[11]
Metro
Projects CC & Ano v Klerksdorp Local Municipality & Ors
2004 (1) SA 16
(SCA) para 13.
[12]
AllPay
n 2
para 43.
[13]
Note
11.
[14]
Section 1.
[15]
Millennium
Waste Management v Chairperson, Tender Board
2008
(2) SA 481 (SCA).
[16]
Chairperson;
Standing Tender Committee & Ors v JFE Sapela Electronics (Pty)
Ltd
[2005] 4 All SA 487
(SCA) para 14.
[17]
Millennium
Waste
paras
18 and 19.
[18]
Id para 19.
[19]
Id.
[20]
Id para 17.
[21]
Regulation 5(c)
It is not specified in the judgment which body of
regulations it was part of, or when it was promulgated.
[22]
Dr
JS Moroka Municipality & Ors v Betram (Pty) Ltd & Ano
[2014] 1 All SA 545 (SCA).
[23]
Para 12.
[24]
Minister
of Environmental Affairs and Tourism & Ors v Pepper Bay Fishing
(Pty) Ltd; Minister of Environmental Affairs &
Ors v Smith
2004 (1) SA 308
(SCA) para 31.
[25]
Moroka
n 22 p
ara
15.
[26]
Id para 16.
[27]
WDR
Earthmoving Enterprises & Ano v The Joe Gqabi District
Municipality & Ors
[2018] ZASCA 72.
[28]
Id para 34.
[29]
Id para 30.
[30]
Id para 34.
[31]
Note 2 para 28.
[32]
Para 30.
[33]
Overstrand
Municipality v Water & Sanitation Services SA (Pty) Ltd
[2018] 2 All SA 644 (SCA).
[34]
Regulation 2834
, promulgated in terms of the Water Act 54 of 1956.
[35]
Id para 50.
[36]
Eskom
Holdings SOC Ltd v Babcock Ntuthuko Engineering (Pty) Ltd
[2024]
ZASCA 63.
[37]
SA
Ests & Finance Corporation Ltd v Commissioner for Inland Revenue
1927 A.D. 236.
[38]
Per
De Villiers CJ in
Poynton
v Cran
1910 A.D. 205
at 222.
[39]
Id.
[40]
Du
Plessis
Statute
Law & Interpretation
LAWSA Vol 25: Part 1 para 360(b(ii).
[41]
GM
Cockram
Interpretation
of Statutes
(Juta 1975) p 80.
[42]
Steenkamp
NO v Provincial Tender Board, Eastern Cape
2007 (3) SA 121
(CC) para 60;
Allpa
y
n 2 para 39.
[43]
Mashavha
v Enaex Africa (Pty) Ltd
[2024] ZAGPJHC 387 (delivered on 22 April 2024).
[44]
P
ara
12.
sino noindex
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