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Section 19: Subcontracting as condition of bid

(1)(a) Where feasible, a procuring institution must subcontract a contract above the prescribed threshold, to advance persons or categories of persons in subsection (2)(a) to (j) in accordance with the prescribed criteria.

(b) The prescribed conditions referred to in paragraph (a) must include a minimum of potentially qualifying suppliers.

(2) If a procuring institution applies subcontracting as envisaged in subsection (1), the procuring institution must advertise the bid with a specific bidding condition that the successful bidder must subcontract a prescribed minimum percentage of the value of the contract to—

(a) a small enterprise;

(b) a small enterprise which is owned by black people;

(c) a small enterprise which is owned by black people who are youth;

(d) a small enterprise which is owned by black people who are women;

(e) a small enterprise which is owned by black people with disabilities;

(f) a small enterprise which is owned by black people who are military veterans;

(g) a small enterprise referred to in any of the paragraphs (b) to (f) within a particular geographical area;

(h) a co-operative which consists of members who are black people; or

(i) a co-operative;

(j) a co-operative referred to in paragraph (h) or (i) in a particular geographical area.

(3)(a) Persons referred to in subsection (2)(a) to (g) must be owned by the relevant category in accordance with the prescribed percentages.

(b) Persons referred to in subsection (2)(a) to (g) must be owned by citizens of the Republic in accordance with the prescribed percentages.

(c) Persons referred to in subsection (2)(h), (i) and (j) must have members of the relevant category and citizens of the Republic in accordance with the prescribed percentages.

(4) Bidders must identify and select subcontractors as prescribed.

(5) A bidder that fails to meet any mandatory subcontracting criteria stipulated in the bid documents is an unacceptable bid and must be disqualified.

(6) A procuring institution must, in addition to the measures stipulated in subsections (1) to (5), evaluate the bid in terms of the prescribed criteria.

(7) This section applies with the necessary changes and as prescribed to a bid for an income-generating contract.

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