CLOSING DATE: 16 MARCH 2021 NAME OF BIDDER: _ BID PRICE

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CLOSING DATE: 16 MARCH 2021 NAME OF BIDDER: _ BID PRICE
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           BID NO: 222/2020

PROVISION OF SECURITY SERVICES FOR THE
 CITY OF MBOMBELA MUNICIPALITY FOR A
        PERIOD OF THREE YEARS

    CLOSING DATE: 16 MARCH 2021
              @11:00

NAME OF BIDDER: ____________________

BID PRICE: ________________________

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INDEX                                                                                                PAGE

Invitation to Bid……………………………………………………………………                                                          3–5

Special Conditions……………………………………………………………… ….                                                        6 – 11

Specifications and pricing schedule ………………………………………………                                               12 – 38

Pricing Schedule – Firm Prices…………………………………………………….                                                  39 – 40

Declaration of interest……………………………………………………………….                                                     41 – 43

Preference Points Claim Form in terms of the
Preferential Procurement Regulations 2017 (Purchases)……………………….                                      44 – 49

Contract Form – Rendering of services……………………………………………..                                             50 – 51

Declaration of Bidder’s Past Supply Chain Management Practices ...................... 52 – 52

Certificate of independent bid determination........................................................... 54 – 55

Authority to sign a bid …………………………………………………………………….57 – 58

Certificate of authority for joint ventures ……………………………………………….59

PPPFA: Preferential Point System …………… ……………………….……………                                               60

ANNEXURE A
Tax clearance certificate application form

ANNEXURE B
General conditions of contract

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                                                                                                       MBD 1
                                                PART A
                                           INVITATION TO BID
YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE CITY OF MBOMBELA
                                   CLOSING
BID NUMBER: 222/2020               DATE:           16 MARCH 2021      CLOSING TIME:                    11:00
              PROVISION OF SECURITY SERVICES FOR THE CITY OF MBOMBELA FOR A PERIOD OF THREE
DESCRIPTION   YEARS
THE SUCCESSFUL BIDDER WILL BE REQUIRED TO FILL IN AND SIGN A WRITTEN CONTRACT FORM (MBD7).
BID RESPONSE DOCUMENTS MUST BE SUBMITTED IN A TENDER BOX LOCATED AT 1 NEL STREET, MBOMBELA CIVIC
CENTRE NEXT TO THE MAIN ENTRANCE
SUPPLIER INFORMATION
NAME OF BIDDER
POSTAL ADDRESS
STREET ADDRESS
TELEPHONE NUMBER                   CODE                                     NUMBER
CELLPHONE NUMBER
FACSIMILE NUMBER                   CODE                                     NUMBER
E-MAIL ADDRESS
VAT REGISTRATION NUMBER
TAX COMPLIANCE STATUS              TCS PIN:                          OR     CSD No:
B-BBEE STATUS LEVEL                                                  B-BBEE STATUS
                                     Yes                                                   Yes
VERIFICATION CERTIFICATE                                             LEVEL SWORN
[TICK APPLICABLE BOX]                                                AFFIDAVIT
                                     No                                         No
[A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE/ SWORN AFFIDAVIT (FOR EMES & QSEs) MUST BE SUBMITTED IN
ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE]

                                                                               ARE YOU A
                                                                               FOREIGN
                                                                               BASED
ARE YOU THE ACCREDITED                                                         SUPPLIER
REPRESENTATIVE IN SOUTH AFRICA                                                 FOR THE
FOR THE GOODS /SERVICES /WORKS                                                 GOODS             Yes           No
OFFERED?                             Yes                    No                 /SERVICES
                                                                               /WORKS       [IF YES, ANSWER PART
                                   [IF YES ENCLOSE PROOF]                      OFFERED?     B:3 ]

                                   Contract 001   Yes             No
                                                                               TOTAL BID
                                   Contract 002   Yes             No
                                                                               PRICE (3
                                                                               YEARS)
                                   Contract 003   Yes             No
TOTAL NUMBER OF ITEMS OFFERED      Contract 004   Yes             No                        R

SIGNATURE OF BIDDER                                                            DATE
                                   ………………………………

CAPACITY UNDER WHICH THIS BID IS
SIGNED
BIDDING PROCEDURE ENQUIRIES MAY BE DIRECTED TO:             TECHNICAL INFORMATION MAY BE DIRECTED TO:
Supply Chain Management                                     Public Safety
Christopher Nkambule                                        Thulani Mkhabela
Tel No: 013 759 2358                                        Tel No: 013 795 9310

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                                                PART B
                                    TERMS AND CONDITIONS FOR BIDDING
1.   BID SUBMISSION:

1.1. BIDS MUST BE SUBMITTED ELECTRONICALLY BY THE STIPULATED TIME ON THE TENDER MANAGEMENT
     PLATFORM. LATE BIDS WILL NOT BE ACCEPTED FOR CONSIDERATION.

1.2. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS PROVIDED–(NOT TO BE RE-TYPED) OR ONLINE

1.3. THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE
     PREFERENTIAL PROCUREMENT REGULATIONS, 2017, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF
     APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT.

2.   TAX COMPLIANCE REQUIREMENTS

2.1 BIDDERS MUST ENSURE COMPLIANCE WITH THEIR TAX OBLIGATIONS.

2.2 BIDDERS ARE REQUIRED TO SUBMIT THEIR UNIQUE PERSONAL IDENTIFICATION NUMBER (PIN) ISSUED BY
    SARS TO ENABLE THE ORGAN OF STATE TO VIEW THE TAXPAYER’S PROFILE AND TAX STATUS.

2.3 APPLICATION FOR THE TAX COMPLIANCE STATUS (TCS) CERTIFICATE OR PIN MAY ALSO BE MADE VIA E-
    FILING. IN ORDER TO USE THIS PROVISION, TAXPAYERS WILL NEED TO REGISTER WITH SARS AS E-FILERS
    THROUGH THE WEBSITE WWW.SARS.GOV.ZA.

2.4 FOREIGN SUPPLIERS MUST COMPLETE THE PRE-AWARD QUESTIONNAIRE IN PART B:3.

2.5 BIDDERS MAY ALSO SUBMIT A PRINTED TCS CERTIFICATE TOGETHER WITH THE BID.

2.6 IN BIDS WHERE CONSORTIA / JOINT VENTURES / SUB-CONTRACTORS ARE INVOLVED, EACH PARTY MUST
    SUBMIT A SEPARATE TCS CERTIFICATE / PIN / CSD NUMBER.

2.7 WHERE NO TCS IS AVAILABLE BUT THE BIDDER IS REGISTERED ON THE CENTRAL SUPPLIER DATABASE (CSD),
    A CSD NUMBER MUST BE PROVIDED.

3.   QUESTIONNAIRE TO BIDDING FOREIGN SUPPLIERS

3.1. IS THE ENTITY A RESIDENT OF THE REPUBLIC OF SOUTH AFRICA (RSA)?                 YES     NO

3.2. DOES THE ENTITY HAVE A BRANCH IN THE RSA?                                       YES    NO

3.3. DOES THE ENTITY HAVE A PERMANENT ESTABLISHMENT IN THE RSA?                      YES    NO

3.4. DOES THE ENTITY HAVE ANY SOURCE OF INCOME IN THE RSA?                           YES    NO

3.5. IS THE ENTITY LIABLE IN THE RSA FOR ANY FORM OF TAXATION?                       YES    NO

IF THE ANSWER IS “NO” TO ALL OF THE ABOVE, THEN IT IS NOT A REQUIREMENT TO REGISTER FOR A TAX
COMPLIANCE STATUS SYSTEM PIN CODE FROM THE SOUTH AFRICAN REVENUE SERVICE (SARS) AND IF NOT
REGISTER AS PER 2.3 ABOVE.

         NB: FAILURE TO PROVIDE ANY OF THE ABOVE PARTICULARS MAY RENDER THE BID INVALID.
         NO BIDS WILL BE CONSIDERED FROM PERSONS IN THE SERVICE OF THE STATE.

         SIGNATURE OF BIDDER:                              ……………………………………………

         CAPACITY UNDER WHICH THIS BID IS SIGNED:          ……………………………………………

         DATE:                                             …………………………………………...

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                                      BID NO: 222/2020
                             CLOSING DATE 16 MARCH 2021 @ 11:00

DATE OF PUBLICATION: 12 FEBRUARY 2021

PROVISION OF SECURITY SERVICES FROM COMPETENT SERVICE PROVIDERS FOR
THE CITY OF MBOMBELA (THREE YEARS)

Bids are hereby invited from capable and experienced service providers registered with
PSIRA for provision of security services for the City for a period of 36 months.

It is compulsory that service providers download a copy of the bid document that will ONLY
be available as from 12 FEBRUARY 2021 on the National e-Tender Portal:
www.etenders.gov.za, free of charge.

Duly completed bid documents and supporting documents which are, CERTIFIED ID
COPIES OF BUSINESS OWNERS, COPY OF A TAX COMPLIANCE STATUS, CERTIFIED
COPY OF B-BBEE CERTIFICATE OR SWORN AFFIDAVIT FOR B-BBEE OR
CONSOLIDATED B-BBEE CERTIFICATE for JV and Consortiums, RATES AND TAXES
CLEARANCE FROM RELEVANT LOCAL AUTHORITY, CSD REGISTRATION FULL
REPORT (SUMMARY WILL NOT BE CONSIDERED) and a copy of the COMPANY
REGISTRATION CERTIFICATE, together with the bid document must be sealed in an
envelope clearly marked: “BID NO.:222/2020, PROVISION OF SECURITY SERVICES
FROM COMPETENT SERVICE PROVIDERS FOR THE CITY OF MBOMBELA (THREE
YEARS), CLOSING DATE: 16 MARCH 2021” with the name of the bidder shall be placed in
the bid box at MBOMBELA CIVIC CENTRE at 1 NEL STREET, MBOMBELA, before 11:00
on the closing date.

Bids received by telegram, fax or e-mail will not be considered. Late bids shall not be
accepted or considered.

No briefing session shall be conducted for this tender. Technical enquiries may be directed to
the project manager on the below contact details.

A preferential point system shall apply whereby this contract will be allocated to a bidder in
accordance with the Preferential Procurement Policy Framework Act, No 5 of 2000 and
as defined in the conditions of bid in the bid document, read in conjunction with the
Preferential Procurement Regulations, 2017, where 80 points will be allocated in respect of
price and 20 points in respect of B-BBEE status level of contribution.

Procurement Enquiries               : Christopher Nkambule (013) 759 2358
Technical Enquires                  : Thulani Mkhabela    (013) 759 9310
Employer                            : Municipal Manager, Mr Wiseman Khumalo
                                      City of Mbombela
                                      P. O. Box 45, Mbombela, 1200
                           VISIT OUR WEBSITE – www.mbombela.gov.za
NB: The results of this bid will be published on council website as prescribed on the MFMA sec 75 (1) (g) and of SCM
                                                regulations, sec. 23 (c).

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SPECIAL CONDITIONS OF THE BID

1. OPENING OF BIDS

Tenders will be opened in public immediately after the closing date and time. All submissions
must be put in a sealed envelope as indicated on page 5 of the bid document and failure to
adhere to this will lead to immediate disqualification.

2. TENDER DEPOSIT

It is compulsory that service providers download a copy of the bid document that will ONLY
be available as from 12 February 2021 on the National Tender Portal, www.etenders.gov.za,
free of charge.

3. ADJUDICATION OF TENDER

City of Mbombela will not be bound to accept the lowest or any tender.

The tender will be adjudicated by City of Mbombela in terms of the Preferential Procurement
Policy Framework. Act, no. 5 of 2000 as defined in the conditions of bid in the bid document,
read in conjunction with the Preferential Procurement Regulation of 2017, where 80 points
will be allocated in respect of price and 20 points in respect of targeted goals.

Tenderers will be required to provide a demonstration of their Workflow Management
System. The system will be evaluated based on the specifications provided. Failure to do so
or failure of the system to perform all actions as required will render the tender non-
responsive.

4. COMPLETION OF TENDER DOCUMENTS

Tenders will only be considered on receipt of this tender document correctly completed with
all insertions in black ink and signed.

The following   compulsory documentation MUST be attached in order for the bid to be
considered:
       -        Company Registration Certificate
       -        Certified ID Copies of business owners
       -        Full Central Supplier Database (CSD) report (Summary report will NOT be
                acceptable) N/B CSD Report date should not be more than 10 days before
                Bid closing date
       -        Certified copy of B-BBEE Certificate (to claim points only)
       -        Formal agreement in case of a joint venture or consortium
       -        In bids where Consortia / Joint Ventures / Sub-contractors are involved, each
                party must submit a separate Tax Clearance Certificate and SARS PIN
                NUMBER;
       -        PSIRA Letter of Good Standing;
       -        Proof of ownership or Lease agreement and specifications for Guard;
                Monitoring system capable of generating reports, tracking guards’ movement;
                panic and GPS option
       -        Copy of Public Liability insurance (R 5 000 000, 00);
       -        Copy of Bank Rating with banking institution stamp;
       -        Director/Shareholder registration certificate with PSIRA;
       -        Company PSIRA Registration Certificate;

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         -        Depending on the prevailing circumstances and availability of funds maximum
                  of 12 Services Providers might be appointed as guided by Security Risk and
                  Security Master Plan.
         -        UIF Compliance Certificate;
         -        Company three years audited financial statement;
         -        Authority to possess Fire Arms (By PSIRA or The South African Police
                  Services). The approval to possess fire arms in terms of the Fire Arms control
                  Act must have been granted by the relevant authority prior to the closing of the
                  bids-No applications forms will be considered;
         -        All qualifications, Certificates, ID, Licenses and B-BBEE must be certified, all
                  certified copies must not exceed three months.
         -        **** Bidders are required to attach all supporting documents and
                  indicates the annexure numbers.
         -        *** The bidder is required to furnish the municipality with information.
                  Failure to adhere with the above instructions will render the tenderers’
                  submission non-responsive

Item         Description               Disqualifying       Not             Attached as   ***Comments
Number                                 item                disqualifying   ****          Annexure
                                                           item            Annexure      attached
                                                                                         (Yes/No)
1            Company Registration      x
             Certificate
2            Certified ID Copies of    x
             business owners
3            Full Central Supplier     X
             Database (CSD)
             report (Summary
             report will NOT be
             acceptable) N/B CSD
             Report date should
             not be more than 10
             days before Bid
             closing date
4            Certified copy of B-                          x
             BBEE Certificate (to
             claim points only)
5            Formal agreement in       x
             case of a joint venture
             or consortium with
             clear profit and loses
             sharing percentages.
             It is compulsory that
             the lead partner must
             have atleast 51%
             majority shares in the
             JV. Only Joint
             Ventures correctly
             registered into the
             CSD will be
             recognised. Joint
             ventures will be
             required to apply with
             SARS for VAT
             number.

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6    In bids where              X
     Consortia / Joint
     Ventures / Sub-
     contractors are
     involved, each party
     must submit a
     separate Tax
     Clearance Certificate
     and SARS PIN
     NUMBER;
7    Certified PSIRA Letter     x
     of Good Standing
     (Expired letters will
     not be considered)
8    Proof of ownership or      x
     Lease agreement and
     specifications for
     Guard; Monitoring
     system capable of
     generating reports,
     tracking guards’
     movement; panic and
     GPS option. Letter of
     intent for leasing from
     reputable institution
     will be considered.
     The municipality
     reserves the right to
     contact the services
     provider for
     verification
     purposes.
9    Certified Copy of          x
     Public Liability
     insurance with a
     minimum of (R 5 000
     000, 00). Letters on
     intent will not be
     accepted. Only
     insurance covers from
     registered and
     authorized financial
     service providers will
     be accepted.
10   Certified copy of          x
     stamped bank
     account from a
     banking institution.
     The bank rating must
     be based on a
     minimum contract of R
     5 Million.
11   Certified valid copies     x
     of
     Director/Shareholder
     registration certificate
     with PSIRA;

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12   Certified copy of a        x
     valid company PSIRA
     Registration
     Certificate;
13   Certified valid UIF        x
     Compliance
     Certificate;
14   Three financial years      x
     audited financial
     statement.
     2017/2018,
     2018/2019,
     2019/2020.
     If the company is not
     required by law to
     provide financial
     statements, a
     declaration from an
     authorized person/
     audit firm must be
     attached with the
     bid. Unaudited
     financial statements
     will not be
     considered.
15   Authority to possess       x
     Fire Arms (By PSIRA
     or The South African
     Police Services). The
     approval to possess
     fire arms in terms of
     the Fire Arms control
     Act must have been
     granted by the
     relevant authority prior
     to the closing of the
     bids-No applications
     forms will be
     considered;
16   All qualifications,        x
     Certificates, ID,
     Licenses and B-
     BBEE must be
     certified, all certified
     copies must not
     exceed three
     months.

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17         Prospective Bidders       x
           are required to attach
           a certified update
           municipal rates and
           taxes account for the
           Company/ lease
           agreement.

           A Certified proof of an
           Up to date Municipal
           rates and taxes
           account of all active
           Directors, with ID
           numbers, physical
           address, and debt age
           analysis.

           Bidders residing
           outside the formalized
           areas must present a
           certified letter of
           confirmation from the
           relevant Tribal
           Authority for both the
           company and active
           directors.

           NB: All accounts
           owing any municipality
           for more than 90 days
           will be disqualified.

 5. COMPULSORY BRIEFING SESSION

 None

 6. TAXES AND DUTIES PAYABLE

 Bidders shall allow in their tender for the payment and recovery of all taxes and other duties.
 No claims for additional payment in this respect will be considered. Prices and rates quoted
 shall be inclusive of Value Added Tax (VAT). VAT shall be recorded as a lump sum in the
 tender summary and the total inclusive of VAT carried to the Form of Tender.

 7. WITHDRAWAL OF TENDER

 In the event of the successful tender failing to execute the service in terms of this tender, the
 Municipality shall be entitled to cancel the contract summarily, in which event the Bidder shall
 be liable for any additional expense incurred by reason of the Municipality having to call for
 fresh tenders or having to accept any less favourable tender.

 8. NOTICE OF BIDDERS

 Should any additions or alterations to the document as issued to Bidders be deemed
 necessary prior to the date for submission of tenders, these will be issued to Bidders in the
 form of Notice and will form part of the tender document.

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The Notices to Bidders shall be completed where applicable by Bidders, signed, dated and
returned with the tender documents.

9. PERIOD OF VALIDITY OF TENDERS

The period of validity of tenders shall be 90 days as stated in the tender form and be
calculated from the closing date for submission of tenders.

10. BID PRICE

All prices must include disbursement and VAT where applicable.
All prices must be stated in South African currency (ZAR) and will be regarded firm.

The total bid price is meant for the purposes of PRICE EVALUATION. This contract will be
rates based due to its nature. N/B None completion of the Determination of Rate (Area3)
Form will render the Bid unresponsive.

N/B Service Providers should be cognisance of the PSIRA annual sectoral determination
when pricing as No rates adjustments will be made within the first year (12 months) of
the Contract. PSIRA annual Sectoral determination rate adjustment will only be
applicable on in year two from the date determined by PSIRA or relevant Government
Gazette.

12. CESSION OF ASSIGNMENT

Neither the Council nor the bidder shall cede or assign a contract for the required rendering
of services or any part thereof or any benefit or interest therein or there under to third parties
without having obtained written permission from the Council.

13. OTHER CONDITIONS

Service Providers tendering with its Director/s having criminal record will be deemed non-
responsive

The Service Provider may be required to provide Guardhouse/s and mobile toilet/s for the
duration of the contract.

The City reserves the right to increase or decrease the scope of work as directed by
prevailing risks levels and Security Master Plan. This tender is embedded on a risks based
principles.

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PROVISION OF SECURITY SERVICES FROM 12 COMPETENT SERVICE
PROVIDERS FOR THE CITY OF MBOMBELA FOR THE PERID OF 36 MONTHS

   1. CONTRACT REQUIREMENTS

1.1.1      SCOPE

           This is a fixed term contract and valid for three years from the commencement
           date of the contract

           The contract is for the supply of physical security to the CITY OF MBOMBELA
           MUNICIPALITY installations and premises. The City of Mbombela is divided into
           four regions namely; Central Region; covering Satellite offices at the Groove,
           Kanyamazane, Elandshoek, Mbombela Head office and installations and
           premises within these areas. Northern Region; covering the satellite office at
           Hazyview, Northern part of the area installations and premises. Eastern Region;
           covering the Satellite office at White River, Kabokweni and Malekutu including
           installations and premises in these areas. Southern Region; covering the Satellite
           office at Barberton, Matsulu and Louws Creek farm areas installations and
           premises in these areas.

1.1.2      DEFINITIONS

        Unless inconsistent with or otherwise clearly indicated by the context, the following
        terms shall have the meanings assigned to hereunder, namely:-

        “24/7” shall mean twenty-four hours a day, seven days a week- i.e. every day and
        night of any year;

        “Client Department” refers to Departments within the City of Mbombela Municipality
        that receives security services in terms of Bid No 222/2020 from the Service Provider;

        “Coordinating Department (Employer)” refers to the Directorate of Public Safety,
        the coordinator for the procurement and rendering of the security services;

        “Guard Monitoring system” refers to a system designed for logging/ tracking of
        security personnel movement and general management of security operations with
        GPS capabilities and panic option (in the City of Mbombela’s context).

        “Industry” refers to the private security industry;

        “Parties” refers to the City of Mbombela Municipality and the Service Provider;

        “Province” means the Mpumalanga Province as contemplated in the Constitution of
        the Republic of South Africa;

        “Security Managers” means the security manager from the Coordinating Department
        responsible for the monitoring and reporting to the Coordinating Department on the
        services rendered by the Service Provider;

        “Security Officer” means an employee of the Service Provider that is deployed at
        the sites of Mbombela Municipality rendering security services;

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        “site” means the allocated City of Mbombela Municipality premises that should be
        under the supervision of the security service providers in Mbombela;

        “the Act” means the Private Security Industry Regulation Act, No. 56 of 2001.

        “the Contractor” means Security Service Providers contracted to the City of
        Mbombela Municipality

        “manpower schedule” means a roster, and is a list of employees, and associated
        information e.g. location, working times, responsibilities for a given time periods
        necessary for the day-to-day operation.

1.2        QUANTITIES

1.2.1   It is expected that the quantities as shown on the Schedule of Manpower and Rates
        will be required during the period of the contract. These quantities are given in good
        faith and without commitment from CITY OF MBOMBELA MUNICIPALITY.

1.2.2   The City reserves the right to increase or reduces the quantities on Schedule of
        Manpower during the term of contract guided by prevailing Security risks and Security
        Master Plan.

1.2.3   The Contractor shall be bound to supply whatever quantities CITY OF MBOMBELA
        MUNICIPALITY requires during the period of the contract, irrespective of the extent
        by which the total quantities ordered may vary from those set out on the Schedule of
        Manpower and Rates.

1.3        GENERAL DUTIES

1.3.1     To perform access control duties and patrol the premises to prevent unauthorized
           persons from entering for and removing equipment or material from the premises
           concerned.

1.3.2     To guard and protect buildings, equipment and material against damage, theft and
           vandalism.

1.3.3     To protect staff, employees, visitors and customers by preventing or minimizing
           risk of injury, including death.

1.3.4     To apprehend any suspicious person on the premises and to take action as
           mandated and required in terms of the Laws of the RSA.

1.3.5      To report any suspicious action or unusual occurrence to the Coordinating
           Directorate Public Safety.

1.3.6      To manage operations and ensure that guards are supervised on a daily basis
           and that they are equipped to perform their duties as agreed upon.

1.3.7      To report any incident to the Co-ordinating Directorate Public Safety’s Security
           Division and the South African Police Services.

1.3.8      To patrol all the areas of the site in order to prevent criminal and suspicious
           activities. In order to improve site credibility the employer may rotate service

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         providers from one site to another within allocated region and beyond guided by
         prevailing security risks.

1.3.9    To prevent and remove persons from illegal dumping, erecting of structures on
         and occupying premises under the Employers control. To prevent persons from
         erecting structures or occupying land illegally or dumping on the sites. This will
         include crowd control capabilities.

1.3.10   To monitor security threats and risks within the Co-ordinating Directorate Public
         Safety and provide an early warning to facilitate proactive interventions.

1.3.11   To generate daily/monthly/quarterly and annual performance reports consistent
         with the Guard Monitoring system.

1.3.12   The Service Provider shall acquaint himself/herself/ company with the prescripts
         of the City of Mbombela’s Security policy upon appointment.

1.4 ADMINISTRATIVE AND FINANCIAL RESOURCES.

1.4.1    The Contractor must demonstrate the capacity to have the administrative and
         management infrastructure and capacity to manage and control the contract at
         the time of commencement of the contract.

1.4.2    The Contractor must give access to its premises to the Employer at any time for
         inspection purposes. These facilities must be acceptable for the running of a
         security business and be equipped with fully functioning equipment and manned
         by skilled staff.

1.4.3    The successful bidder must have a financial capacity of commencing the project
         with no hindrance. THE SERVICE PROVIDER IS RESPONSIBLE FOR
         REMUNIRATING OF THE EMPLOYEES IN TIME AND INLINE WITH THE
         PSIRA GUIDELINES. SHOULD THE SERVICE PROVIDER FAIL TO
         REMUNURATE ITS EMPLOYEES CONTRACTED WITH THE MUNICIPALITY
         WORKING SITES, THE MUNICIPALITY RESERVES THE RIGHTS TO PAY THE
         EMPLOYEES DIRECTLY AND RECOVER THE COSTS PLUS TEN PERCENT
         FROM THE COMPANY.

1.5      OPERATIONAL REQUIREMENTS

1.5.1    Companies must provide vehicles that are registered under the contractor’s name.

1.5.2     Contractor must have firearms with a valid and proper license registered in the
         name of the Company.

1.5.3    The Service Provider must provide a Guard Monitoring system as defined. In the
         event of different interpretation of guard monitoring system the City’s definition
         shall prevail.

1.5.4    All High Risk Institutions shall be provided with Quad Bikes and Guard Monitoring
         System by the service provider.

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1.6      PLACE OF SERVICE DELIVERY

         The current requirement of fixed positions to be manned and to be tendered for
         will be presented at the compulsory site briefing. The tenderer must be in a
         position to provide the service within the geographical borders of the CITY OF
         MBOMBELA MUNICIPALITY’s area of responsibility. The City is divided into four
         regions consisting of Central Region, Northern Region, Eastern Region and
         Southern Region.

1.7      SHEDULE OF RATES

1.7.1    The Contractor will be required to complete the Schedule of Manpower and Rates
         in this document.

1.7.2    All rates must include Value Added Tax.

1.7.3    The schedule must reflect a period of three years, i.e year one, year two and year
         three.

1.7.4    A breakdown of the manpower schedule must be fully completed as stipulated
         under Contract 001 to 004 depending on the contract tendered for.

1.7.5    The tenderer shall when pricing for this tender take into account the terms and
         conditions of the three year wage determination agreement concluded for the
         Private Security Sector. No adjustments will be made during the first 12 months of
         the contract.

1.8      DAMAGE

         Any damage caused, whether willful, accidental or negligence, by the contractor
         or his staff to the City of Mbombela’s property must be repaired or replaced at the
         Contractor’s expense. Any property found damaged by other which could
         implicate the Contractor in any way must be reported to Sub-Directorate Public
         Safety before any services commences.

1.9      STANDARDS

         In terms of this contract, Contractors and their employees utilized on the premises
         of the Employer shall at all times during the term of this agreement be registered
         in terms of the Private Security Industry Regulation Act (Act 56 of 2001) and
         comply with the Private Security Industry Regulations, 2002, which came into
         operation with the Act on 14 February 2002 and amended from time to time.

         The Service provider shall remain in good standing with PSIRA for the entire term
         of contract.

         Certified copies of the relevant certificates shall be forwarded to the Employer
         before commencement of the agreement.

1.10     LAWS TO APPLY

1.10.1   The contract shall in all respects be construed in accordance with the Laws of the
         Republic of South Africa and any differences that may arise between the client

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         and the Contractor in regard to the contract shall be settled during Arbitration
         Processes or the Courts of the Republic of South Africa.

1.10.2   The Contractor shall comply with, but not limited to the following relevant
         legislation and subject to any amendments of these frameworks and should any
         of these above be amended or replaced, the replacement or amendment should
         be adhered to:
:

         1.10.2.1   The Private Security Industry Regulation Act (Act no 56 of 2001).

         1.10.2.2   The Private Security Industry Regulations, 2002, dated 14 February
                    2002.

         1.10.2.3   The Appeal Regulations, 2002, promulgated on 14 February 2002.

         1.10.2.4   Provisions from the Security Officers Act 92 of 1987 concerning
                    funding and improper conduct.

         1.10.2.5   The Compensation for Occupational injuries and diseases Act (Act no
                    103 of 1993).

         1.10.2.6   All provincial ordinances and Local Authority by-laws and all relevant
                    regulations promulgated there under having an effect on the business
                    of the security personnel provided in terms of this contract.

         1.10.2.7   The Occupational Health and Safety Act (Act no 85 of 1993). The
                    contractor will carry out his obligations, including the appointment of
                    officials, in accordance with the requirements of this Act.
         1.10.2.8   The Criminal Procedures Act (Act no 51 of 1977)

         1.10.2.9   The Firearms Control Act (Act no 60 of 2000).

         1.10.2.10 Control and Access to Public Premises and Vehicles Act, 1985 (Act no
                   53 of 1985).

         1.10.2.11 Code of Conduct for Security Service Providers, 2003 (Prescribed
                   under the private Security Industry Regulation Act, 2001; Code of
                   Conduct is applicable.

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1.11     REGISTERED OFFICE AND COMMUNICATION

         The Contractor must maintain a 24/7 operation and permanently based office
         during (the period of the contract) so that messages and instructions etc, may be
         relayed through it to the field staff. The contractor must be in possession of a
         functional (Radio Control Room, cellular phones and permanent registered
         telephone/s and fax line) for effective communication of the parties.

1.12     MANAGEMENT AND SUPERVISION

1.12.1   The Contractor must provide for a Contract Manager. Such representative shall
         be competent and responsible, and shall have adequate experience in carrying
         out work of a similar nature to the security service provided in terms of this
         agreement and shall exercise personal supervision on behalf of the Contractor.
         The Employer shall be notified in writing of such appointment, which will be
         subject to the employer’s approval.

1.13.2   The Employer may delegate to any deputy or other person (Security Manager),
         any of his powers or functions in terms of this agreement and on receiving notice
         in writing of such delegation the Contractor shall recognize and obey the
         delegated person to whom any such powers or functions have been delegated as
         if he/she were the Employer.

1.13.3   The Contractor shall exercise adequate supervision over the service at each site
         or shall be represented by a representative having full power and authority on
         behalf of the Contract Manager. Such representative shall be competent and
         responsible, and shall have adequate experience in carrying out work of a similar
         nature to the security service provided in terms of this agreement and shall
         exercise personal supervision on behalf of the Contract Manager.

1.13.4   The Contractor shall be required to carry out proper supervision of his own
         personnel by means of at least one visit by an offsite supervisor per shift. The
         manager/ delegated person should visit the site at least twice a week, one of
         which should be after hours. These visits must be recorded in the monthly report.
         Details of such visits shall be recorded in the occurrence book provided by the
         Contractor and the pocket books of the security personnel visited.

1.13.5   The Contractor shall at all times be responsible and liable for the acts and
         omissions of his employees providing services to the Employer in terms of this
         agreement while they are acting within the course and scope of their duties and
         employment even when not on the premises of the Employer.

1.14     CONFIDENTIALITY

         The Contractor must ensure that CITY OF MBOMBELA MUNICIPALITY’s interest
         are served at all times during the contract period. Recommendations must be
         based on impartial observations, responsible opinions and pertinent facts. Any
         information gained by the Contractor during the course of the contract must be
         kept in strict confidence and may not be used without the written permission of the
         co-ordinating or Client Department.

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1.15     WORKING HOURS

          6h00 to 18h00 (Day Shift)
         18h00 to 06h00 (Night Shift)
         The employer may declare other sites half day sites

1.16     TRAINING OF CONTRACTOR’S PERSONNEL

1.16.1   Before the effective date of the contract, the Contractor shall provide satisfactory
         proof of certification of guarding personnel, that will be used on this contract, as
         Grades A, B, and C security officers as specified. No guard shall be in any of the
         City’s site without having being cleared by the Coordinating Department.

1.16.2   Personnel issued with firearms shall receive accredited training with such firearm
         at least once every six (6) months or as per the firearm act dictate. The results of
         such training shall be made available to the Employer on request. Personnel shall
         be professionally and formally trained and be able to use and handle a firearm
         when required.

1.16.3   The Employer shall conduct random competency tests/inspections of the
         Contractor’s personnel regarding the firearms with which they have been issued.
         Tests and inspections may include safety precautions, theoretical written tests,
         practical shooting capacity and the general conditions of the relevant firearms.

1.16.4   Personnel shall be trained and be able to handle guard/patrol dogs when required
         by the Employer.

1.16.5   The Contractor’s personnel shall, after completion of their training, have the
         expertise to execute their functions properly, in particular regarding but not limited
         to the execution of their service, including the legal aspects thereof.

1.16.6   Training shall be provided to the Contractor’s personnel before the
         commencement date to ensure that the personnel will immediately be qualified to
         perform their services to the level of professional efficiency required by the
         Employer.

1.16.7   Drivers must be in possession of a valid driver’s license and shall be trained and
         be able to drive a vehicle as specified and required by the Employer.

1.17     COST OF TRAINING

         The Contractor shall be responsible for all costs incurred in the training of security
         personnel.

1.18     DISCIPLINARY MEASURES

1.18.1   Security personnel provided by the Contractor shall in addition to this contract be
         subject to the Coordination or Client Departments’ Code of Conduct.

1.18.2   A breach of discipline or any negligence of duty on the part of a member of the
         security personnel provided by the security Contractor in terms of this agreement
         shall be dealt with immediately by the Contractor’s management.

1.18.3   The Contractor shall notify the Employer, in writing, of any such breach, failure or
         negligence that takes place by any personnel of the contractor.

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1.18.4    The Contractor shall notify the Employer in writing of the outcome of any such
          disciplinary proceedings.

1.18.5    Should the Contractor decide not to take disciplinary steps against a member of
          his personnel, the reason therefore shall forthwith be conveyed in writing to the
          Employer.

1.18.6    In the event of the Employer not being satisfied by the performance of any
          member of the Contractor’s personnel in terms of this agreement the Employer
          shall notify the Contractor in writing thereof. The Contractor shall forthwith remove
          the abovementioned personnel from any duties related to this contract and
          replace such officer with a suitably trained security officer. (TALKING ABOUT A
          MEMBER, OFFICER AND PERSONNEL)

The personnel of the Contractor who are replaced at the Employer’s request shall thereafter
not be used at any other site, installation, and depot or office complex of the Employer
without the prior written consent of the Employer.

1.19      EQUIPMENT

1.19.1    The Contractor shall provide, but not limited to, all necessary equipment as
          follows:

              1.19.1.1 Site
                                 Occurrence Book
                                 Pocket Book
                                 Fully operational radio
                                 Fully operational torch
                                 Guard Monitoring
                                 Hand Held License Disc/ Driving License Scanner

              1.19.1.2 Personnel
                              Pocket book
                              ID card (PSIRA ID card)
                              Pen
                              Timesheet
                              Button Sticks

1.19.2    Security personnel must be in full uniform with identification and in possession of
          serviceable equipment when posted for duty.

1.19.3    The Contractor shall at its cost/s procure, acquire, install, and maintain in good
          and safe working order of all services equipment and shall have no claim based
          on enrichment or for compensation, or reimbursement or of any other nature
          whatsoever, against COORDINATING DEPARTMENT AND THE CLIENT
          DEPARTMENTS.

1.19.4     A guard monitoring system (as prescribed by the employer) to be installed at
          sites which shall enable the COORDINATING DEPARTMENT AND THE CLIENT
          DEPARTMENTS’ Control Room to monitor the system. The contractor will be
          responsible for all costs.

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1.20     OWNERSHIP OF OCCURRENCE AND POCKET BOOKS

1.20.1   All original pages of the occurrence books and any other books shall from the
         moment they are being utilized become the property of the Employer and shall be
         handed to the Employer for safekeeping immediately after the books are
         complete.

1.20.2   The Contractor will be given access to all these books on request and will be
         allowed to make photocopies thereof at his own cost.

1.21     UNIFORMS

1.21.1   The Contractor will provide his personnel (does this include office admin staff)
         with a standard company uniform consisting of at least the following attire:

         1.21.1.1   In the case of a male Security Officer:

                           Baton
                           Belt
                           Cap/beret
                           Handcuffs and keys
                           Jacket
                           Jersey
                           Trousers (combat/step-out)
                           Shirt
                           Shoes/boots
                           Socks
                           Whistle
                           Lanyard
                           Rain suite
                           Tie
         1.21.1.2   In the case of a female Security Officer:

                           Baton
                           Blouse/shirt
                           Handcuffs and keys
                           Hat/cap/beret
                           Jacket
                           Jersey
                           Shoes
                           Skirt/ Trousers
                           Stockings
                           Whistle
                           Lanyard
                           Rain suite
                           Tie/ Cravat

1.21.2   Insignia of the Contractor shall be visibly displayed on uniforms at all times.

1.21.3   The Contractor’s personnel shall at all times be in possession of a Contractor’s ID
         card and a Private Security Industry Authority (PSIRA) ID card that should be
         displayed clearly whilst on duty.

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1.21.4   When on duty the personnel provided by the Contractor shall at all times (unless
         otherwise authorised by the Employer) wear uniform.

1.22     SUB-CONTRACTING

1.22.1   A party to this agreement shall not without written approval of the other party,
         during the term of this agreement employ or offer to employ (or be instrumental in
         any third party employing or offering to employ), any person in a supervisory,
         managerial or senior capacity if that person was employed by the other party at
         any time during the term of this agreement.

1.22.2   Although the personnel provided in terms of this agreement shall observe the
         Employer’s regulations, rules, operating methods and procedures while providing
         the service under this agreement, they shall at all times continue to be employees
         of the Contractor.

1.22.3   Although the Contractor’s security personnel may on occasion render certain
         services under the supervision and control of the Employer, no contractual
         relationship shall come into existence between such personnel and the Employer.
         Under no circumstances or at any time shall the Employer become the employer
         of the personnel. No contractual obligation between the client and the security
         personnel shall be created due to the fact that the personnel perform their
         services under the control and authority of the client or in accordance with the
         client’s operating methods.

1.23     INTIMIDATION

1.23.1   It is the intention of both parties that the personnel provided in terms hereof shall
         not fail to carry out their duties as a result of any form of intimidation. Should a
         Contractor suspect intimidation of personnel, he/she shall take prompt action in
         conjunction with the Employer and the South African Police Service to remedy the
         situation.

1.23.2   Such action shall result in an immediate investigation instituted against the
         personnel involved.

1.23.3   The Contractor shall forthwith notify the Employer, in writing, of any form of
         intimidation which their personnel may be subjected to.

1.24     INSTRUCTIONS TO THE CONTRACTOR

         All verbal requests by the Employer to the Contractor shall be confirmed in writing
         by the Contractor within 24 hours.

1.25     MEETINGS

1.25.1   Weekly Liaison

         The Contractor’s Area Supervisor shall be required to attend a regular weekly
         meeting with the Employer to discuss the provision of these services. Meetings
         must be minuted.

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1.25.2     Monthly Liaison

           The Contractor Managing Member shall also be required to attend a meeting on a
           monthly basis with the Employer, to discuss matters pertaining to the execution of
           security services by the Contractor and the administration of the agreement in
           general. Meetings must be minuted.

1.25.3    Quarterly Liaison

           The Contractor shall be required to attend a meeting on a quarterly basis with the
           Employer, to discuss matters pertaining to the execution of security services by
           the Contractor and the administration of the agreement in general. Meetings must
           be minuted.

1.26       REPORTING OF INCIDENTS AND REPORTS

1.26.1     All incidents or accidents on the premises or to the property of the Employer shall
           forthwith be immediately reported to Coordinating Department Security Services
           Section.

1.26.2     A detailed written report of all such incidents shall be reported/presented to the
           Employer within twelve (12) hours after the occurrence of the said incident or
           accident.

1.26.3     Salient details of all incidents occurring on the Employer’s premises shall be
           recorded in the occurrence book immediately and the Coordinating Department
           must be informed. The pages of the occurrence book shall be numbered
           consecutively by the Contractor and no person shall remove any pages for any
           reason whatsoever.

1.27     TWO-WAY HAND-HELD RADIOS OR ANY MEANS OF COMMUNICATION
         EXCEPT CELLULAR PHONES

1.27.1     Hand-held two-way radios or Any Means of Communication except Cellular
           Phones provided by the Contractor shall have an adequate range to ensure good
           communications between any two points within a patrolled area of responsibility
           on the premises of the Employer on which security services are provided.

1.27.2     The Contractor shall provide the Employer before the commencement date of the
           service with a diagram indicating the local communication network and call signs
           to be used by the Contractor during the term of this agreement. Any changes in
           these networks or call-signs shall forthwith be brought to the attention of the
           Employer in writing.

1.27.3     The hand-held two-way radios shall be on site at all times and be in good working
           condition.

1.27.4    Proper radio procedures and protocol shall be used at all times.

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1.28       OCCURRENCE BOOKS

           The Contractor shall provide an Occurrence Book which must be engraved with
           both the Company logo and the City of Mbombela Logo on the date of
           commencement of deployment/services. All Occurrence Books deployed on the
           City of Mbombela sites shall henceforth be engraved with both logos at the
           expense of the Contractor.

1.29       ACCESS CONTROL

1.29.1     The Contractor shall at all times comply with the provisions of the Control and
           Access to Public Premises and Vehicles Act, 1985 (Act no 53 of 1985).
1.29.2     The search of a female under these clauses shall only be carried out by a female
           security personnel member and should at all times be done in a courteous and
           dignified manner.

1.30       PROVISION DOGS

           The Coordinating Department may request the deployment of dogs as and when
           required.

1.31     CESSION OR DELEGATION

          1.31.1 Neither party shall not cede or delegate any of its right or obligation under
          this Agreement.

1.31.2    The Service Provider shall not be allowed to proceed with any of the following
          matters before the prior written consent of the Coordinating Department and the
          Client Department/s:

              1.31.2.1       any transfer of any amount of shares of the Service Provider;

              1.31.2.2       any change in the composition of the Service Provider;

              1.31.2.3       any change in the ownership of the company of the Service

                             provider; or

              1.31.2.4.      any material change in the constitution, memorandum, articles
                             of association, or similar document providing for the
                             establishment or incorporation of the business or company of
                             the Service Provider.

1.31.1      CANCELLATION

1.31.1      Any party to this Agreement may cancel this Agreement by giving notice in writing
            to the other Party not less than 14 (fourteen) days prior to the intended date of
            cancellation of the Agreement. (Copy from SLA)

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1.32     MANAGEMENT OF DISCIPLINE

1.32.1    The Service Provider must draw properly and consistently enforce a disciplinary
          code of conduct in respect of all security officers in its employment and
          undertakes to, on or before the signing of this Agreement provide the Coordinating
          Department and the Client Departments with certified copies of its current grievance
          and disciplinary procedures.

1.32.2    The disciplinary code contemplated above must contain rules which adequately
          reflect the relevant values and principles as well as any further rules that are
          reasonably necessary to ensure disciplined, honest, safe, reasonable,
          professional and competent conduct by security officers in the circumstances in
          which they are employed and made available by the Service Provider for the
          rendering of security services.

1.33     PROVISIONS OF FIREARMS (When required by the Employer)

1.33.1   The Contractor shall at all times ensure that the personnel provided to the
         Employer in terms of this agreement only be issued with the firearms listed below.

         1.33.1.1   Shotguns (pump action or semi-automatic)

    .    1.33.1.2   Revolvers

         1.33.1.3   Pistols

1.33.2   All firearms shall be accompanied by a certificate of serviceability which will be
          renewed at least once every twelve (12) months and shall be issued by a qualified
          gunsmith.

1.33.3   Only firearms registered in the name of the Contractor shall be permitted on the
         Employer’s sites. The Contractor furthermore shall guarantee that he is the lawful
         owner of all firearms issued to his personnel in terms of this agreement.

1.33.4   The Contractor shall at all times ensure that all firearms and ammunition issued to
         his/her personnel in terms of this agreement are in clean and working condition
         and are properly maintained.

1.33.5   All handguns carried by personnel must be securely holstered.

1.33.6   Firearm inspection by a competent gunsmith declaring firearms serviceable and
          that all the firearms to be deployed during the contract period must comply with
          the Firearms Control Act 60 of 2000.

1.34     REMUNERATION AND ALLOWANCES

1.34.1   The Contractor shall acquaint himself with any relevant wage regulating measure
         or statutory enactment which may be in force or which may be contemplated,
         affecting conditions of employment during the term of the agreement.

1.34.2   The Contractor must provide audited proof that remuneration paid to each of their
         employees was adjusted by at least the amount by which the statutory wage
         applicable to each individual employee was increased.

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1.34.3        The Contractor shall remain solely responsible for the payment of all costs
              pertaining to personnel, including but not limited to salaries, bonuses pension
              fund contributions, benevolent fund contributions, medical fund contributions and
              insurance premiums.

1.34.4        Salaries payable by the Contractor to his/her personnel shall at no stage be less
              than those prescribed by the current applicable wage determination in the security
              industry.

1.34.5        The Contractor shall be responsible for the payment of all applicable taxes,
              charges, duties or fees assessed or levied by any recognized authority in respect
              of the security personnel provided or as a result of the security personnel being
              provided by the Contractor in terms of this agreement and shall, on request
              furnish sufficient documentary proof to the client that these payments have in fact
              been made.

1.35          PENALTIES

              Any transgression as per the following but not limited to will be as follows:

1.35.1 Site Equipment

              All equipment must be fully operational and present on site at all times. The
              following penalties will apply for non-compliance.

       ITEM                               PENALTY 1ST            2ND                  3RD PENALTY
       Penalty applies if any of these    Penalty –Deductions    Penalty –            Penalty –
       is LACKING (NOT PRESENT)           Per occasion,          Deductions           Deductions
                                          unless otherwise       Per occasion,        Per occasion,
                                          indicated              unless otherwise     unless otherwise
                                                                 indicated            indicated
       Hand held Radio/Any Means          R1000,00               R2000,00             R3000,00        per
       of Communication (except                                                       shift, per person
       Cellular Phones)
       Firearm/shotgun                    R3000,00               R4000,00             R5000,00        per
                                                                                      shift, per person
       Flashlight/ spotlight (24 hrs)     R500,00                R 600,00             R750,00 per shift
       Standard               Operating   R1000, 00              R2000,00             R3000,00        per
       Procedure not on site                                                          shift
       Provision of Security Officer      R2000,00               R3000,00             R4000,00        per
       of a lower grade than required                                                 person
       No visit by Contractor’s           R500,00                R750,00              R1000,00        per
       supervisor (A minimum of two                                                   person
       occasions per shift are
       required)
       Drunk of Duty                      R1000,00               R2000,00             R3000,00       per
                                                                                      person
       Poor     job     performance       R500, 00               R750,00              R1500,00
       (Documented)
       Short Posting per shift            R1000,00               R2000,00             R3000, 00
       No proper duty on/off shift        R500,00                R 1000,00            R1500,00 per site
       handover by site seniors, or
       No Control/Ops- Room OB
       number entered in site OB
       Any       tempering        with    R5000,00               R10 000,00           R15 000,00 per
       equipment,            including                                                item
       monitoring devices

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1.35.2 Personal Equipment

               Part of standard company equipment
               Copy list from SLA

     ITEM                             PENALTY (1st                      2nd               3rd PENALTY
     Uniform                          R500,00                           R750.00           R1500,00 per item
                                                                                          per person per shift
     Raincoat                         R250,00                           R750.00           R 1500,00 per item
                                                                                          per person per shift
     PSIRA Identity card              R1000,00                          R2000,00          R3000,00 per person
                                                                                          per shift
     Occurrence Book                  R1000,00                          R2000,00          R3000,00 per site,
                                                                                          per person per shift
     Pocket book                      R250,00                           R500,00           R1000.00 per person
                                                                                          per shift
     Wall clock (working)             R250, 00                          R500,00           R750,00 per item per
                                                                                          person per shift
     Pen (working)                    R250,00                           R300,00           R350,00 per item per
                                                                                          person per shift
     Handcuffs                        R 200,00                          R400,00           R600,00 per person
                                                                                          per shift
     Key (for Handcuffs)              R 200,00                          R250,00           R300,00 per person
                                                                                          per shift
     Baton                            R 300,00                          R500,00           R800,00 per person
                                                                                          per shift

1.35.3 Vehicles

      ITEM                            PENALTY 1st                       2nd               3rd PENALTY
      Patrol Vehicles                 R 2000,00                         R 3000,00         R 5000,00

1.35.4 Conduct

      ITEM                            PENALTY                           2nd                3rd
      Sleeping on duty                R1000,00                          R2000,00           R    3000,00     per
                                                                                           person per shift
      Late posting                    R1000,00                          R 2000,00          R3000 per post per
                                                                                           hour
      Post deserted                  R3000,00                          R 5000,00           R10 000,00 per
                                                                                           person per shift
      Under posting                  R5000,00                          R 7500,00           R10 000,00 per
                                                                                           person per shift
      Drunk on duty                  R3000,00                          R 7500,00           R      10000,00per
                                                                                           person per shift
       Guard monitoring              R5000,00                          R10 000,00         R15 000,00 per shift
      system not working
1.35.5 General penalties will apply in the following cases:

 NATURE OF INCIDENT              PENALTY                         2nd                3rd
 Management/supervisory          R1000,00 per site per shift     R2000,00           R 3000,00
 site visit
 Falsification of entries into   R2000, 00 per page on which     R3000,00           R 4000,00
 the occurrence book.            any number of faults founded.
 Failure to report incident      R1000,00                        R2000,00           R3000,00
 Monthly report not received     R2000,00 per company report     R4000,00           R6000,00
 within five days

1.35.6 For the purpose of clarity the following explanations will apply:-

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1.36 BREACH

1.36.1     In the event of the Contractor committing a breach of a provision of this
           agreement and failing to remedy such breach within 24 hours, the Employer shall
           be entitled to immediately cancel the relevant portion of the agreement, or to
           cancel the whole agreement by notice in writing to the contractor.

1.36.2     If the Contractor and/or any member of his personnel contravenes or fails to
           comply with, any part of the conditions of this agreement, which includes the sub
           clauses hereunder or any other part thereof, it shall be deemed to be a breach of
           contract.
1.36.3     To report for duty at the time and place as agreed upon from time to by the
           parties. (remedial)
1.36.4     To continue with his/her duties until the time agreed upon

1.36.5     To comply with the regulations, rules, operating methods and procedures of the
           employer.

1.36.6    Not signing on and off duty.

1.36.7    To wear on duty in terms of this agreement, unless the client should decide
           otherwise the standard uniform clothing including footwear, in a reasonable state
           of cleanliness and repair.

1.36.8    To have available when reporting for duty equipment in good working order.

1.36.9    To work shifts or overtime as from time to time agreed to by the parties.

1.36.10    To carry out instructions issued by the Employer in pursuance of the regulations,
           rules, operating methods and procedures.

1.36.11    To report for duty in a sober and alert manner, without being under the influence
           of alcohol or drugs, or to remain in such sober and alert condition while on duty.

1.36.12    To timorously report incidents or to submit reports as provided for in this
           agreement.

1.36.13    To timorously complete pocket and/or occurrence books.

1.36.14    To have a valid firearm license/permit available when reporting for duty

1.36.15    Any of the above shall be immediately reported to the Employer by telephone,
           and as soon as practically possible by facsimile or email and the Contractor shall
           take remedial action without delay to the satisfaction of the Employer. If any one
           or more of the failures referred to above are of such a frequency that the security
           service provided to the employer in terms of this agreement is adversely affected,
           it shall be dealt with by the Employer.

1.36.16     Any of the above shall, as soon as it is practically possible, be reported to the
           Employer by telephone or facsimile message and the Contractor shall take
           remedial action without delay to the satisfaction of the Employer. If any one or
           more of the failures referred to above are of such a frequency that the security
           service provided to the client in terms of this agreement is adversely affected, it
           shall be dealt with by the Employer.

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1.36.17     Should the Contractor act in conflict with or fail to comply with any statutory
            provisions, regulations, by-laws, rules or program contemplated in Clause 3.10,
            which have a bearing on the service provided in terms of this agreement, such
            action or failure shall be deemed as an immediate breach of agreement.

1.36.18     Notwithstanding anything contained to the contrary in this agreement, should the
            Contractor commit any act of insolvency, assign, surrender or attempt to assign or
            surrender his estate or allow any default judgment against it to remain unsatisfied
            for seven (7) days or if the said judgment is not rescinded within fourteen (14)
            days of the date of the default judgment, or be liquidated or placed under judicial
            management or be wound up, whether provisionally or finally or make any
            material incorrect or untrue statement of representation in connection with any
            information furnished by it in respect of this agreement or the remainder of the
            tender document then upon the occurrence of any one (1) or more of the
            aforesaid events, the Employer may without prejudice to any other rights he may
            have, elect to immediately terminate this agreement by written notice to the
            Contractor.

1.37 LIABILITY

1.37.1 The Service Provider shall at all times be liable for the acts and
       omissions of Its employees providing security services to the Coordinating Department
       and the Client Departments in terms of this Agreement and acting within the course and
       scope of their duties and employment.

1.37.2 The Coordinating Department and the Client Departments shall not be responsible for
       any loss of or damage to any vehicles, equipment or other material used by the Service
       Provider in respect of the security services provided in terms of this Agreement and used
       on the premises caused by the Coordinating Department and the Client Departments or
       any of its employees acting within the course and scope of their duties and employment.

1.37.3 The Service Provider hereby indemnifies and holds the Coordinating Department and
       the Client Departments harmless against –

           any damage to the Coordinating Department’s and the Client Department’s
            property, whether movable or immovable;

           loss of property belonging to the Coordinating Department and the Clients
            Department;

           liability in respect of any damage to property, whether movable or immovable,
            belonging to third parties and on the premises of the Coordinating Department and
            the Client Departments; and

           liability in respect of death of, unlawful arrest, injury, illness or disease to any
            person connected to the rendering of the security services.

1.37.4 The Coordinating Department and the Client Departments shall not be responsible for
       any loss of or damage to any vehicle, equipment, or material used in the rendering of
       security services, loss or damage the proximate cause of which is the negligence of
       the Service Provider or its employees.

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