Net1 UEPS Technologies has issued an update on the SA Social Security Agency (SASSA) tender process. According to an earlier South African Constitutional Court ruling, SASSA has to initiate a new tender process for a five-year contract for the payment of social grants.
Net1, whose contract to handle social security payments has been found invalid, approached the Constitutional Court over several issues it has with the new SASSA tender, after the agency called for a request for proposals (RFP) on 22 October. "Bidders were required to submit proposals by 12 December 2014, and Net1 intends to participate in the tender process," says the company.
The court has now directed the agency to:
* Extend the deadline for the submission of bids to 27 February;
* Finalise its proposed amendments to the RFP by 15 December and file a copy of the draft amended RFP with the court by 20 December;
* Circulate the draft amended RFP to all litigating parties and all the other bidders by 20 December. The draft amended RFP must highlight all changes made in response to the application and to the questions posed by those bidders who sought to obtain clarity through the written question and answer procedure contained in the RFP; and
* Issue a bidder's notice calling upon all bidders to furnish objections or questions to the draft amended RFP to SASSA by 15 January 2015.
Net1's approach to the court came after a detailed analysis of the tender specifications led it to conclude the tender specifications were not sufficiently clear "regarding a number of critical points and failed to comply with the RFP requirements specified in the court's order".
Subsequently, Net1 wrote to SASSA, requesting the RFP be withdrawn, corrected and reissued, but the agency declined the request.
The company then applied to the court on 6 November for an order setting aside the RFP and directing SASSA to issue a corrected RFP. Net1 initiated the request to SASSA, and subsequently to the court, to "ensure there is no ambiguity in the tender specifications or conflict with the court's April 2014 remedy order in an attempt to reduce the likelihood of another prolonged legal challenge should SASSA award a new tender".
According to Net1, SASSA and AllPay - an unsuccessful bidder during the previous RFP and a party to the court's April 2014 ruling - opposed the company's application.
Towards the end of last year, the Constitutional Court ruled the Net1 tender invalid and then, in April, said the agency would have to start afresh with the R10 billion deal. The tender is currently held by Net1 subsidiary Cash Paymaster Services (CPS).
The court's declaration of invalidity was based on two grounds: SASSA failed to ensure Net1 unit CPS's empowerment credentials were objectively confirmed, and the second bidder notice did not give enough clarity around the biometric requirements, rendering the process uncompetitive.
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