What is an unsolicited proposal?
In terms of government procurement an "unsolicited proposal" is defined as:
A proposal / concept received by an institution outside its normal procurement process that is not an unsolicited bid (a submission that must be innovative, unique and provided by a sole supplier).
What is the criteria that government looks at when considering an unsolicited proposal?
It must be understood that government institutions are not obliged to consider unsolicited proposals. However, government institutions may consider such a proposal if it meets the following requirements:
- a comprehensive and relevant project feasibility study has established a clear business case; and
- the product or service involves an innovative design; or
- the product or service involves and innovative approach to project development and management; or
- the product or service presents a new and cost-effective method of service delivery.
What information must an unsolicited proposal contain?
When submitting an unsolicited proposal the following information must be included:
- name, address, identification or registration number (if corporation), VAT registration number and the contact details of its authorised representative;
- identification of any confidential or property data to be made public;
- The names of other South African institutions that have received a similar unsolicited proposals;
- the proponent's current SARS Tax Clearance Certificate and in the case where the proponent is a consortium or joint venture, a current Tax Clearance Certificate for each member thereof;
- a declaration of interest containing the particulars as required by the National Treasury's standard bid document (SBD) 4 or Provincial equivalent;
- a declaration of the proponents past supply chain practices containing the particulars as required in the National Treasury's standard bid document (SBD) 8 or Provincial equivalent;
- a declaration from the proponent indicating that the offering of the unsolicited proposal was not as a result of any non-public information obtained from officials from the relevant institution or any other institution.
What will happen once your proposal has been submitted?
- Should the governmental institution decide to consider the unsolicited proposals the proponent will be informed per registered letter of the fact.
- The proposal will then be assessed in terms of set criteria as well as institutional specific requirements.
- If the institution decides to proceed with the unsolicited proposal said institution must negotiate an unsolicited proposal agreement with the proponent
- Once the unsolicited agreement is concluded the institution must prepare and issue bid documents with a subsequent bidding process.
- The bidding process will include the following:
- A Request to Qualification (RFQ) to test the market for the existence of other private entities capable of providing the product or services;
- the preparation of a draft contract should there be no adequate response to the RFQ;
- the preparation of a Request for Proposal (RFP) with a draft contract should there be one or more adequate responses to the RFQ;
- conducting a competitive bidding process in terms of the institution's supply chain management system among the firms qualified in the RFQ and the proponent; and
- reimbursement of the proponent should they not be awarded the contract resulting from the bidding process. The quantum of the reimbursement shall be those audited costs of the proponent from the time the institution was solicited by the proponent to the conclusion of the bidding process.
- The requirements for the bid process are:
- that it must be developed by the institution;
- it must be disclosed that the bid originated from an unsolicited proposal; and
- the provision of the agreed costs and terms of payment to the proponent and the requirement that all bidders save for the proponent make allowance for these costs to the proponent directly, if their bid is successful.
Assistance with Proposal Assessment / Third Party Involvement
After receiving an unsolicited proposal and before either accepting or rejecting the proposal in accordance with the prescribed procedure an institution may seek advice from independent consultants or experts, subject to specific set requirements that includes disclosure agreements.
Utilisation of Information / Intellectual Property
Institutions may also not use any data, concept, idea, or other part of an unsolicited proposal as the basis or part of the basis, for a solicitation or in negotiation with any other firm unless the project proceeds to procurement in terms of the prescribed procedure and the proponent is notified of and agrees to the intended use; provided that this prohibition does not precluded the use of any data, concept or idea in the proposal that also is, or becomes available from another source without restriction or disclose information identified in the unsolicited proposal agreement as confidential.
