The South African Revenue Service has today informed the bidders that it did not award the voice and data networks replacement tender in terms of clause 9.18 of the RFT document because SARS was unable to make a value for money determination. A new replacement, converged network, however, remains an imperative for SARS in the light of yearly increases in SARS' workload over the past years. A new RFT will be issued within the next ten weeks with specifications which will enable both SARS and bidding vendors to engage in the tender process in a manner that will secure an outcome.
The tender (RFT 26/2005 NETWORK CONVERGENCE TENDER SARS) was issued in 2005 and called for tenders to provide upgrades on the SARS voice and data networks. In particular, the Request for Tender (RTF) called for the provision of:
The principal reason for not awarding the tender is that SARS is not able to make a satisfactory value for money business case determination. The significant price differential in the tenders indicated the divergence in approach taken by the various bidders. This resulted in the service and specifications offered by them being significantly different, making it impossible to evaluate the bids fairly. In order to ensure the integrity of the process and fair treatment of all bidders, a vendor recall was also conducted and clarity sought on the pricing and service specifications offered. SARS was still unable to resolve these issues.
The South African Revenue Service will continue to apply the most rigorous process and value for money test to all tenders currently under consideration and in the future. In order to be an effective and efficient tax and customs administration, SARS will procure the necessary goods and services required for its business operations in a manner that complies with the relevant procurement and finance legislation and also ensures best value for money to Government and the people of South Africa.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE