Common use of National Industrial Participation (NIP) Programme Clause in Contracts

National Industrial Participation (NIP) Programme. 33.1 The NIP Programme administered by the Department of Trade and Industry shall be applicable to all contracts that are subject to the NIP obligation. 34.1 In terms of section 4 (1) (b) (iii) of the Competition Act, Act 89 of 1998, as amended, an agreement between or concerted practice by firms, or a decision by an association of firms, is prohibited if it is between parties in a horizontal relationship and if a bidder(s) is/are or a contractor(s) was/were involved in collusive bidding (or bid rigging). 34.2 If a bidder(s) or contractor(s), based on reasonable grounds or evidence obtained by the purchaser, has/have engaged in the restrictive practice referred to above, the purchaser may refer the matter to the Competition Commission for investigation and possible imposition of administrative penalties as contemplated in the Competition Act, Act 89 of 1998. 34.3 If a bidder(s) or contractor(s) has/have been found guilty by the Competition Commission of the restrictive practice referred to above, the purchaser may, in addition and without prejudice to any other remedy provided for, invalidate the bid(s) for such item(s) offered, and/or terminate the contract in whole or part, and/or restrict the bidder(s) or contractor(s) from conducting business with the public sector for a period not exceeding 10 (ten) years and/or claim damages from the bidder(s) or contractor(s) concerned. This declaration is based on and replaces Municipal Bid Document 6.2 (MBD 6.2). The amendments made to the MBD 6.2 document have been necessary to clarify this standard document as it relates to local production and content in the Electrical and Telecom Cable sector. Before completing this declaration, bidders must study the General Conditions, Definitions, Directives applicable in respect of Local Content as prescribed in the Preferential Procurement Regulations, 2017 and the South African Bureau of Standards (SABS) approved technical specification number SATS 1286:2011 (Edition 1) and the Guidance on the Calculation of Local Content together with the Local Content Declaration Templates [Annex C (Local Content Declaration: Summary Schedule), D (Imported Content Declaration: Supporting Schedule to Annex C) and E (Local Content Declaration: Supporting Schedule to Annex C)]. Documents listed herein are downloadable from the dti’s official website, ▇▇▇▇://▇▇▇.▇▇▇▇▇▇.▇▇▇.▇▇. 1 General Conditions 1.1 Preferential Procurement Regulations, 2017 (Regulation 8) makes provision for the promotion of local production and content. 1.2 Regulation 8(2) prescribes that in the case of designated sectors, organs of state must advertise such bids with the specific bidding condition that only locally produced goods with a stipulated minimum threshold for local production and content will be considered. 1.3 Where necessary, for tenders referred to in paragraph 1.2 above, a two stage bidding process may be followed, where the first stage involves a minimum threshold for local production and content and the second stage price and B-BBEE. 1.4 A person awarded a contract in relation to a designated sector, may not sub-contract in such a manner that the local production and content of the overall value of the contract is reduced to below the stipulated minimum threshold. 1.5 The local content (LC) expressed as a percentage of the bid price must be calculated in accordance with the SABS approved technical specification number SATS 1286: 2011 as follows: LC = [1- x / y] *100 Where x is the imported content in Rand y is the bid price in Rand excluding value added tax (VAT) Prices referred to in the determination of x must be converted to Rand (ZAR) by using the exchange rate published by Nedbank at close of business on the date of advertisement of the bid as required in paragraph 4.1 below. The SABS approved technical specification number SATS 1286:2011 is accessible on ▇▇▇▇://▇▇▇.▇▇▇▇▇▇.▇▇▇.▇▇/industrial_development/ip.jsp at no cost. 1.6 A bid may be disqualified/declared non-responsive if this Declaration Certificate and Annex C (Local Content Declaration: Summary Schedule) are not submitted as part of the bid documentation. The following financial institutions are currently (as at 18 October 2016) approved for issue of contract guarantees to the City: ABSA Bank Ltd. FirstRand Bank Ltd. Investec Bank Ltd. Nedbank Ltd. Standard Bank of SA Ltd. Barclays Bank plc. Citibank n.a. Credit Agricole Corporate and Investment Bank HSBC Bank plc. ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Bank Societe Generale Standard Chartered Bank Compass Insurance Co. Constantia Insurance Co. Credit Guarantee Insurance Co. Guardrisk Insurance Co. Hollard Insurance Company Ltd. Home Loan Guarantee Co. Infiniti Insurance Limited Lombard Insurance Mutual & Federal Insurance Co. New National Assurance Co. Regent Insurance Co. Renasa Insurance Company Ltd. Santam Limited

National Industrial Participation (NIP) Programme. 33.1 The NIP Programme administered by the Department of Trade and Industry shall be applicable to all contracts that are subject to the NIP obligation. 34.1 In terms of section 4 (1) (b) (iii) of the Competition Act, Act No. 89 of 1998, as amended, an agreement between between, or concerted practice by by, firms, or a decision by an association of firms, is prohibited if it is between parties in a horizontal relationship and if a bidder(sbidder (s) is/is / are or a contractor(s) was/was / were involved in collusive bidding (or bid rigging). 34.2 If a bidder(s) or contractor(s), based on reasonable grounds or evidence obtained by the purchaser, has/has / have engaged in the restrictive practice referred to above, the purchaser may refer the matter to the Competition Commission for investigation and possible imposition of administrative penalties as contemplated in the Competition Act, Act No. 89 of 1998. 34.3 If a bidder(s) or contractor(s) has/), has / have been found guilty by the Competition Commission of the restrictive practice referred to above, the purchaser may, in addition and without prejudice to any other remedy provided for, invalidate the bid(s) for such item(s) offered, and/or and / or terminate the contract in whole or part, and/or and / or restrict the bidder(s) or contractor(s) from conducting business with the public sector for a period not exceeding 10 ten (ten10) years and/or and / or claim damages from the bidder(s) or contractor(s) concerned. This declaration Agreement THIS FRAMEWORK AGREEMENT is based made on the …………………day of 2021 The Employer: The Department of Rural Development and replaces Municipal Bid Document 6.2 (MBD 6.2)Agrarian Reform – represented by the Head of Department or his delegated official. The amendments made Supplier: Registered office of the Supplier RECITALS: A. The Employer and the Supplier wish to enter into a framework agreement which will enable the Employer, from time to time, to enter into a Call-Off Contract or a series of Call-Off Contracts with the Supplier for some or all of the Services required by the Employer under this framework agreement from time to time. B. The terms and conditions of this Agreement shall apply to the MBD 6.2 document have been necessary Services to clarify be provided by the Supplier under any Call-Off Contract. unless the context indicates “Agreement” this standard document as it relates to local production and content in the Electrical and Telecom Cable sector. Before completing this declarationframework agreement, bidders must study the General Conditions, Definitions, Directives applicable in respect of Local Content as prescribed in the Preferential Procurement Regulations, 2017 and the South African Bureau of Standards (SABS) approved technical specification number SATS 1286:2011 (Edition 1) and the Guidance on the Calculation of Local Content together with the Local Content Declaration Templates [Annex C (Local Content Declaration: Summary Schedule), D (Imported Content Declaration: Supporting Schedule to Annex C) and E (Local Content Declaration: Supporting Schedule to Annex C)]. Documents listed herein are downloadable from the dti’s official website, ▇▇▇▇://▇▇▇.▇▇▇▇▇▇.▇▇▇.▇▇. 1 General Conditions 1.1 Preferential Procurement Regulations, 2017 (Regulation 8) makes provision for the promotion of local production and content. 1.2 Regulation 8(2) prescribes that in the case of designated sectors, organs of state must advertise such bids with the specific bidding condition that only locally produced goods with a stipulated minimum threshold for local production and content will be considered. 1.3 Where necessary, for tenders including all other documents referred to in paragraph 1.2 above, a two stage bidding process may be followed, where the first stage involves a minimum threshold for local production and content and the second stage price and B-BBEE. 1.4 A person awarded a contract in relation to a designated sector, may not sub-contract in such a manner that the local production and content of the overall value of the contract is reduced to below the stipulated minimum threshold. 1.5 The local content (LC) expressed as a percentage of the bid price must be calculated in accordance with the SABS approved technical specification number SATS 1286: 2011 as follows: LC = [1- x / y] *100 Where x is the imported content in Rand y is the bid price in Rand excluding value added tax (VAT) Prices referred to in the determination of x must be converted to Rand (ZAR) by using the exchange rate published by Nedbank at close of business on this Agreement; “Agreement Commencement Date” the date for commencement of advertisement of the bid as required in paragraph 4.1 below. The SABS approved technical specification number SATS 1286:2011 is accessible on ▇▇▇▇://▇▇▇.▇▇▇▇▇▇.▇▇▇.▇▇/industrial_development/ip.jsp at no cost. 1.6 A bid may be disqualified/declared non-responsive if this Declaration Certificate and Annex C (Local Content Declaration: Summary Schedule) are not submitted as part of the bid documentation. The following financial institutions are currently (as at 18 October 2016) approved for issue of contract guarantees to the City: ABSA Bank Ltd. FirstRand Bank Ltd. Investec Bank Ltd. Nedbank Ltd. Standard Bank of SA Ltd. Barclays Bank plc. Citibank n.a. Credit Agricole Corporate and Investment Bank HSBC Bank plc. ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Bank Societe Generale Standard Chartered Bank Compass Insurance Co. Constantia Insurance Co. Credit Guarantee Insurance Co. Guardrisk Insurance Co. Hollard Insurance Company Ltd. Home Loan Guarantee Co. Infiniti Insurance Limited Lombard Insurance Mutual & Federal Insurance Co. New National Assurance Co. Regent Insurance Co. Renasa Insurance Company Ltd. Santam LimitedAgreement;