SANRAL to resume open tenders after court rulings

The South African National Roads Agency SOC Limited (SANRAL) will return to open tender processes for routine road maintenance and engineering consultancy services after court rulings found its contractor panel system to be unlawful and unconstitutional.

According to the South African Government News Agency, SANRAL CEO Reginald Demana announced the decision during a media briefing in Centurion on Tuesday, July 28, where he addressed the agency’s procurement processes, litigation and allegations of corruption.

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SANRAL has resolved to launch a new tender process without delay.

“The incumbent contractors remain in place until November 30, and SANRAL must ensure uninterrupted road maintenance during the transition. All panel appointments have fallen away, and no work may be allocated under the set-aside tender,” Demana said.

The agency will begin issuing tenders in batches over the coming days.

“We have prepared the tender packs and are running a proactive internal assurance process. A limited number of tenders have already been issued in the Western Cape and Northern Cape, signalling our intention to move with speed,” he said.

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Demana added that SANRAL is required to appoint routine road maintenance contractors by the end of November and may seek an extension from the court if necessary.

Last month, two court applications relating to SANRAL’s Category 2 engineering consultants panel found the tender process unlawful because of irregularities in the adjudication process.

The tender was intended to establish a panel of engineering consultants for periodic and special maintenance, as well as road strengthening projects.

Demana said there are currently no service providers appointed for this work and no contract extensions are required.

More recently, the High Court in Pretoria ruled that SANRAL’s decision to award routine road maintenance contracts to a panel of 20 companies was unlawful and unconstitutional.

Construction firms BCB Solutions and Botle Ba Afrika Roads successfully challenged the decision.

Demana said SANRAL had learned important lessons from the litigation.

“Internally, we needed more time to prepare for this change in the core business operating model and to align our management processes and systems accordingly.

“Externally, we needed to understand the socio-economic impact on service providers, some of whom may have been established mainly to service SANRAL, and how they would be affected by not being included on the panels for a five-year term,” he said.

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He said SANRAL previously managed routine road maintenance through about 251 contractors.

Following a recommendation from its Supply Chain Management division, the agency reduced the number to 20, believing a smaller panel would be quicker to procure and easier to manage.

SANRAL received about 401 bids during the tender process, from which 20 successful bidders were recommended.

Demana said the agency will now proceed with open tender processes while working to meet the deadlines set out in the court orders.