Objectives

The primary objective is to appoint a qualified and registered auctioneer to facilitate the public auction and disposal of loose municipal assets and fleet vehicles on behalf of the Mossel Bay Municipality. The successful bidder will manage the entire auction lifecycle, ensuring regulatory compliance, transparent proceedings, and optimal revenue recovery while adhering to municipal supply chain management policies.

Scope of Work

• Secure and prepare a dedicated auction and storage venue (approximately 300–400 square metres) within the municipal boundaries, available at least one week prior to the event.
• Execute all advertising activities, including two English-language newspaper publications, online promotions, lamp pole displays, and twenty strategically placed posters, with all associated costs covered by the auctioneer.
• Inspect, categorise, and assign lot numbers to municipal assets, compiling a detailed catalogue for public review at least one day before the auction.
• Register prospective bidders, conduct the auction in English using South African Rand, and collect payments before releasing any assets.
• Ensure all purchased lots are removed within two working days post-sale at the auctioneer’s sole risk and cost.
• Supply all operational equipment, including computers, stationery, furniture, and audio-visual systems.
• Submit a comprehensive final report containing the vendor roll, bid prices, VAT, total amounts, and verified proof of advertising and venue expenses.
• Remit net proceeds to the municipality within seven working days, subject to a 5% daily penalty for delayed payments.

Technical Requirements

• Mandatory registration with the South African Institute of Auctioneers (SAIA).
• Submission of a fixed commission structure and a detailed marketing schedule with itemised costs.
• Documented proof of relevant experience: evidence of completing between three and ten or more similar auctioneering projects, supported by appointment letters or service level agreements.
• Valid client reference questionnaires completed by previous employers (not older than five years).
• Compliance with standard municipal bidding prerequisites: Central Supplier Database (CSD) registration, SARS Tax Compliance Status PIN, valid B-BBEE verification certificate or sworn affidavit, and proof of municipal rates and taxes clearance (or applicable lease/affidavit documentation).
• Original, wet-ink signed bid documents; retyped forms or electronic signatures are strictly prohibited.
• Achieve a minimum functionality score of 45 out of 60 points during pre-evaluation to qualify for price assessment.

Skills and Experience Requirements

• Proven track record in executing public auctions for government or municipal entities.
• Strong logistical coordination capabilities to manage asset inspection, lot compilation, venue setup, and timely removal of sold items.
• Expertise in municipal procurement regulations, advertising compliance, and financial reconciliation.
• Effective communication and stakeholder management skills to liaise with municipal officials, register bidders, and ensure transparent auction proceedings.

Key Terms and Services Explained

• SAIA Registration: Professional accreditation required by law for individuals conducting public auctions in South Africa, ensuring adherence to industry standards and ethical practices.
• 80/20 Preference Point System: A procurement evaluation model where 80% of award points are allocated to price competitiveness, and 20% are distributed based on specific socio-economic goals (B-BBEE status and local business presence).
• Net Proceeds Remittance: The auctioneer collects the full purchase price from winning bidders, deducts pre-approved commissions, advertising, and venue fees, and transfers the remaining balance to the municipality.
• Municipal Rates and Taxes Clearance: Bidders must demonstrate that neither they nor their directors are in arrears (exceeding three months) with any municipal account, requiring submission of current accounts, lease agreements, or sworn affidavits as proof.
• No Electronic Signatures: All submitted bid documents must bear original handwritten signatures in black ink; digital or scanned signatures will result in immediate disqualification.