Power Line Construction: Understanding Designated Products and the Bidding Process

As with effect from 21 October 2015, the South African Minister of Finance approved the instruction note in terms of regulation 9(2) instructing that if the following products are to be procured, they must have 100% South African production and content.

Designated products include: Powerline hardware, Steel power pylons, Monopole pylons, Steel substation structures, Street lighting steel poles and Steel lattice towers & masts.

Bid Inviations

According to the instruction note and Regulation 9(1), only locally manufactured products with the stipulated threshold of 100% for local production and content must be considered. This is in line with the national development and industrial policies for local production and MUST be included in bid invitations.

Bid Evaluations

According to the instruction note, a two stage evaluation process must be followed to evaluate the bids received:

STAGE 1:
Evaluation in terms of the minimum threshold (100%) for local production and content. The standard bidding documents (SBD 6.2 or MBD 6.2) must be completed in line with the requirements of the SABS approved technical specification number SATS 1286:2011 and the Guidance Document for the Calculation of Local Content together with the Local Content Declaration Templates. Only bids that meet the minimum 100% threshold in stage 1 must be evaluated further.

STAGE 2:
Evaluation in terms of the 80/20 or 90/10 preference point systems as prescribed in the Preferential Procurement Regulation, 2011.