Sbd, Declaration Certificate For Local Production And Content

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SBD 6.2
DECLARATION CERTIFICATE FOR LOCAL PRODUCTION AND CONTENT
This Standard Bidding Document (SBD) must form part of all bids invited. It contains general
information and serves as a declaration form for local content (local production and local
content are used interchangeably).
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, 2011 and
the South African Bureau of Standards (SABS)
approved technical specification number SATS 1286:201x.
1. General Conditions
1.1. Preferential Procurement Regulations, 2011 (Regulation 9. (1) and 9. (3) make
provision for the promotion of local production and content.
1.2. Regulation 9.(1) prescribes that in the case of designated sectors, where in the award of
bids local production and content is of critical importance, such bids must be advertised
with the specific bidding condition that only locally produced goods, services or works or
locally manufactured goods, with a stipulated minimum threshold for local production
and content will be considered.
1.3. Regulation 9.(3) prescribes that where there is no designated sector, a specific bidding
condition may be included, that only locally produced services, works or goods or
locally manufactured goods with a stipulated minimum threshold for local production
and content, will be considered.
1.4. Where necessary, for bids referred to in paragraphs 1.2 and 1.3 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.
1.5. 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.
1.6. The local content (LC) as a percentage of the bid price must be calculated in
accordance with the SABS approved technical specification number SATS 1286: 201x
as follows:
LC = 1
x 100
Where
x
imported content
y
bid price 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 South African Reserve Bank (SARB) at 12:00 on the
date, one week (7 calendar days) prior to the closing date of the bid as indicated in
paragraph 4.1 below.
1.7. A bid will be disqualified if:
1

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