Mobile Telephone Networks (Pty) Ltd v Transnet Soc Ltd and Another (2017/33335) [2018] ZAGPJHC 454 (18 June 2018)

Mobile Telephone Networks (Pty) Ltd v Transnet Soc Ltd and Another (2017/33335) [2018] ZAGPJHC 454 (18 June 2018)

The court held that MTN was properly disqualified from the tender process for failing to comply with the strict requirement to provide numeric Rand values in all blocks of the pricing schedule. The RFP's instructions were clear, repeated, and material to the evaluation process, and Transnet had no discretion to condone non-compliance. The use of 'N/A' instead of 'R0' thwarted the intended uniformity and comparability of bids. Regarding Vodacom, the court found that Transnet's process of seeking clarification at the technical evaluation stage was legitimate and did not amount to impermissible augmentation of the bid. Vodacom's response to the SLA requirement, including its qualifications,...

Citation
[2018] ZAGPJHC 454
Parties
Applicant: Mobile Telephone Networks (Pty) Ltd; Respondent: Transnet Soc Ltd; Respondent: Vodacom (Pty) Ltd
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
18 June 2018
Case Number
2017/33335
Procedural Posture
Review Application / Judgment After Hearing
Outcome
Application dismissed with costs.
Judges
Sutherland
Legal Topics
Public Procurement, Tender Irregularity, Material Non Compliance, Bid Evaluation, Service Level Agreement
Administrative Law Commercial and Corporate Public Procurement Tender Irregularity Material Non Compliance Bid Evaluation Service Level Agreement

Case Brief

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Parties

Mobile Telephone Networks (Pty) Ltd

Applicant

Transnet Soc Ltd

Respondent

Vodacom (Pty) Ltd

Respondent

Procedural Posture

Review Application / Judgment After Hearing

Legal Issues

  1. 1 Was MTN properly disqualified from the tender process for failing to comply with the pricing schedule requirements?
  2. 2 Did Transnet commit any irregularity in its treatment of Vodacom's bid, specifically regarding technical threshold scoring and SLA acceptance?
  3. 3 Was Vodacom's clarification of its bid a legitimate process or an impermissible augmentation?

Ratio Decidendi

The court held that MTN was properly disqualified from the tender process for failing to comply with the strict requirement to provide numeric Rand values in all blocks of the pricing schedule. The RFP's instructions were clear, repeated, and material to the evaluation process, and Transnet had no discretion to condone non-compliance. The use of 'N/A' instead of 'R0' thwarted the intended uniformity and comparability of bids. Regarding Vodacom, the court found that Transnet's process of seeking clarification at the technical evaluation stage was legitimate and did not amount to impermissible augmentation of the bid. Vodacom's response to the SLA requirement, including its qualifications,...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed.
  • The award of the tender to Vodacom is declared free of any irregularities.